German automobile giant Volkswagen is set to venture into India's performance oriented car segment, aiming to capitalise on the surging demand for premium performance focused vehicles across the country. With a target of achieving 15 per cent sales growth in 2024, the German auto giant plans to extend its footprint beyond metro cities to Tier 2 and Tier 3 cities.
As per a report by HT Auto, Volkswagen is strategising to place special emphasis on its GT-badged passenger vehicles in India. In 2023, the company recorded sales of approximately 44,000 cars in the country. Presently, Volkswagen offers models like the Taigun SUV and Virtus sedan with GT trim. These variants are powered by a 1.5-litre petrol engine and to enhance affordability, the company is also considering introducing a 1.0-liter petrol engine in its GT lineup. The recent unveiling of the GT Plus Sport and GT Line further reveals Volkswagen's commitment to capturing the performance oriented vehicle segment.
Ashish Gupta, Brand Director at Volkswagen Passenger Cars India, highlighted the success of the GT trims on the Taigun and Virtus, which have created a new market segment in India. He noted the growing demand for performance SUVs and sedans, driven by consumer preferences for premium features, safety, and performance. Consumers are increasingly willing to invest in vehicles offering top-of-the-line features, without compromising on quality. This trend has fueled the growth of the performance-based sub-segment, which Gupta believes will continue to expand in the foreseeable future.
The GT brand has become iconic for Volkswagen, and the company aims to make use of its success by maximising the potential of the GT badge. Volkswagen is poised to strengthen its position in India's competitive automotive market. By catering to the growing demand for performance oriented vehicles and expanding its presence across diverse geographical regions, Volkswagen aims to establish itself as a leader in India's automotive landscape.
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Gupta further revealed that initially, the GT variants were only available with a 1.5-litre petrol engine, accounting for 35-40 per cent of sales for both the Taigun and Virtus models. Notably, the popularity of GT models extends beyond metro cities, with approximately 20-25 per cent of sales occurring in Tier 2 and Tier 3 towns.