Volkswagen launches Ameo to tap into India’s sub-4 m compact sedan segment

The production of the vehicle had involved 800 people. The sub-4 metre compact sedan segment in the country is the most crowded segment with every major player having its presence there. With Ameo being launched, Volkswagen also made its presence felt in the segment which was lacking.

Till date, the company has invested Rs 5,700 crore in India, which includes its 220 hectare setup in Chakan. Other than Ameo, the company also plans to launch the Passant GTE next year. Lauermann said the company intends to go for deep localisation and increase the present percentage to 85-87 per cent.

At present, the company manufactures 500 cars per day at the Chakan facility, which Lauermann said would eventually be increased to 550.

The company has achieved 82 per cent localisation in its products with only the petrol engine and gear boxes being imported into the country. Around 60 per cent of the vehicles manufactured in Chakan are exported.

Meanwhile, the emission scandal which had hit the company last year, had affected its sales figures in India too. “Till September 2015, the sales and production figures were going strong, but post that, we did notice a dip in sale. In fact, there was a dip of 2 per cent in the sales figures post the incident,” Lauermann said.

Post the emission scandal which first broke out in the US, Volkswagen vehicles were tested in India and found to be flouting emission norms too. Around 3,877 Vento vehicles were recalled in April this year fitted with 1.5 litre engines.