Volkswagen to launch a new product every year

German automaker Volkswagen said it is looking to launch one new product every year in India, in order to remain competitive in the market.

The company, which has been struggling to achieve higher volumes, is planning to enter segments like sports utility vehicles and compact sedans.

Michael Mayer, director -- Volkswagen Passenger Cars, Volkswagen Group Sales India, who joined India operations about three months back, said the company is working on a mid-term plan for the next 3-5 years, which will yield the results soon.

"Challenge now is to really look into a sustainable strategy that can stand any development," he said.

Lack of any major new launches over last few years had made it difficult for Volkswagen to attract volumes when other international players like Honda and Ford have been launching products in newer segments.

As part of the plan, Volkswagen would launch a new product starting 2015. It will also look at entering new/growing segments apart from coming out with facelifts of existing products.

"What we need is to launch one product every year, otherwise we are not relevant. Secondly, we need to look at major segments, along with the existing segments," said Mayer.

As per the data by Society of Indian Automobile Manufacturers, company's sales declined 20% in the last fiscal compared with the previous one.

This year too, the company has not seen any revival in its volumes so far as its sales saw a 34.18% year-on-year drop in April-August.

Mayer hinted that the upcoming launches would be a combination of locally developed products and introductions from its global portfolio.

Without giving any timeline for the launches, Mayer said, "You need to be present in segments that are growing and if you look into the segments, you see people going for different body styles, where they desire for seating positions, room; you see people buying smaller sedans, so these are very interesting segments and we are looking into that."

The company also intends to continue expanding premium category portfolio.

"We are looking into other car segments which are more upmarket, because Volkswagen is in a place where there is hardly any other brand. So I need these parts of the market populated with Volkswagen cars that are more aspirational and at the same time credible," said Mayer.

Talking about the entry-level segment, Mayer said the company is seriously considering it, though introduction of a right product may take time.

"You can't allow a failure in that segment because it always involves big capacity. We are looking seriously into that but we will only go into this market when we have a competitive value proposition," he said.

Meanwhile, Volkswagen on Wednesday launched the refurbished Vento at Rs 7.44 lakh and the new 1.5 TDI Turbo diesel variant at Rs 10.49 lakh (ex-showroom, Mumbai).