Volkswagen India, the Indian subsidiary of the German automobile manufacturer Volkswagen is in the process of expanding its export operations in India. The move by the carmaker is being seen by the industry experts as a way to counter low sales being witnessed in the domestic market.
The carmaker has been ramping up its exports to several global markets Mexico which is a major global market for its Vento premium car model. The automaker is following the route many carmakers have found to safeguard their interests in India amid slowdown and low economic activity in the Indian auto market.
In the fiscal 2013-14, the Indian auto industry has seen a 5 percent decline in the exports of cars in the mini and compact car segment. However, the sedan exports have grown by 32 percent with the major contributors being Volkswagen and Nissan which have been facing low volume sales in India.
The passenger car volumes of Volkswagen in India have declined by 19 percent in the year 2013 in comparison to those in the year 2012. The carmaker attributes the decline in sales to inflation and the hike in fuel prices.