In H1 2022, VW India sold 21,588 units of its product portfolio versus 10,843 units in H1 2021. The performance has been enabled by the India 2.0 products. Since the day of the India global launch on 9th June, Volkswagen delivered over 2,500 Virtus cars through a mega delivery program.
The growth in sales, however, will not have a smooth trajectory climbing up. In an exclusive interview with TOI Auto, Ashish Gupta, Brand Director, Volkswagen Passenger Cars India, stated that the demand for VW cars is about 30-40 percent higher than the manufacturer’s capability to deliver, owing to supply chain constraints led by the ongoing semiconductors shortage and the situation in Europe.
Gupta further stated that the third quarter this year will be challenging for the brand. “While it was expected at the beginning of this year that the circumstances would improve by Q3, it’s actually gotten worse with the geopolitical situation in Europe and lockdowns in China.”
He added that Volkswagen India aims to keep it transparent for its customers and underlines that the next few months will see the waiting period for its cars to go higher. The waiting period for the flagship Volkswagen Tiguan is currently about five months and could stretch further, affected majorly by supply chain constraints.
“Q3 this year is going to be extremely challenging for us and the industry, but we plan to wrap up Q4 back in a positive growth trend.”
Gupta also told us that the demand for Virtus automatic is higher at about 65% than the 55% that VW had planned for and it is around 55% for the Taigun. While 60% purchase the 1-litre version, 40% prefer the 1.5-litre. “These are some adjustments we will have to make (in an effort to reduce the demand-supply gap),” he added.
He also confirmed that the company will also begin testing the Volkswagen ID4 electric vehicle in India by August/September. While he did not reveal a launch date, we expect the ID4 to go on sale in India in early 2023.