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Volkswagen seeks tax sops for safer cars

German car maker says the Indian government should amend tax policies to help players lay emphasis on safety, fuel and emission efficiency

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Michael Mayer, director, Volkswagen Passenger Cars, Volkswagen Group Sales India Pvt Ltd at the launch of new ‘Jetta’ in Mumbai on Tuesday
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German car manufacturer Volkswagen wants the Indian government to amend tax policies to help players lay emphasis on safety, fuel and emission efficiency.

The existing tax policies in the country are linked to the dimensions of the vehicle, wherein sedans which are more than 4 metre in length are required to pay 20% excise duty, according to the company.

"India is already a part of the company's global plans. It is not just about making in India but about the role that India can play in exporting to other countries. We see clear signs of the business environment improving, not only for the local market but also for exports market." said Michael Mayer, director, Volkswagen Passenger cars, Volkswagen Group Sales India Pvt Ltd told dna, at the re-launch of the Jetta sedan on Tuesday.

The current market share of Volkswagen Jetta stands at 10% and the company aims to grow sales at 3-4% going forward in line with the segment growth. The company expects a market share of 10-15% going forward.

Jetta is assembled at Aurangabad plant, with an annual capacity of 89,000 units, while Volkswagen Polo and Vento are assembled at Chakan plant with a capacity 130,000 units.

On dealership network, the company is focusing more on quality and profitability, and plans to enter Tier 2 and Tier 3 cities as the market develops.

Volkswagen is also present in the used car market with its 120-dealer network across all cities and the company said in any growing car market quality used cars play a major role.

Volkswagen on Tuesday re-launched Jetta, a mid level luxury segment sedan, at a starting price of Petrol 1.4 TSI at Rs13.87 lakh (ex-showroom Mumbai). Meanwhile, the top end diesel variant, Highline DSG, will be sold at Rs.19.77 lakh (ex-showroom Mumbai).

Volkswagen, which wants to become the most accessible German premium car brand in India, believes that the safety measures in a car is something without which a customer wouldn't buy a car. The new Jetta comes with anti-lock brakes, electronic stabilisation programme (ESP) and six air bags.

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