German automobile manufacturer Volkswagen Group is aiming to increase its market share in India to 20% as it plans to expand dealerships in tier 2 and tier 3 cities.

The European auto major which has established its presence in all major Indian cities with 70 dealerships across the country, is also planning to expand its reach in tier 2 and tier 3 cities.

Director of Volkswagen Passenger Cars India Mr Neeraj Nag said that “In our estimate the market size in 2018 should be around five million cars and we should be targeting to achieve 20 per cent market share from the group. For Volkswagen brand it was two per cent market share in 2010.”

Mr Neeraj Nag said that “In the beginning of 2009 we had 14 dealerships in India and in the beginning of 2011 we have 70 dealerships in 57 major cities. In line with the growth in the market which is going to increase multi fold with full year operation of Polo and Vento, we want to open dealerships in other cities which could be tier 2 and tier 3 cities as well.”

Volkswagen India director also said that eastern Indian cities like Siliguri, Asansol and Patna could be the destinations of the company for opening new dealerships.

Mr Nag added that “We have plan to expand in the eastern part of the country. We have dealerships in Bhubaneshwar, Kolkata, Guwahati. We look forward for four or five new dealerships. Siliguri, Asansol, Patna are cities with potential.We have to study and see.”

The Volkswagen Group currently comprises of the three brands- Audi, Skoda and Volkswagen.

(Sourced from BS)