Competition

North American

VW main model for the American markets are Jetta and Passat. It also sells other from its European lineup such as the Beetle, Golf, Touareg and Tiguan. VW has struggled to make a impact with its models in the American market where VW sales are more than doubled by Honda and tripled by Toyota. The current generation Passat was made larger and cheaper but still buyers prefer to go with Honda Accord or the Toyota Camry. American manufactured cars like the Ford Fusion and the Chevy Impala are also much successful than VW Passat. It doesn’t have a competitor to Ford Explorer and Toyota Highlander loosing out in the highly lucrative SUV segment.  VW has a very limited model line-up in the US and it sales reflect VW struggle in the market.

 

EUROPE

VW is the market leader since more than a decade. It hatchback the Golf is its highest selling car. Golf currently in its 7th generation has a production of more than 30 million units over the year. Apart from Golf the recently introduce small car Up! compete with Fiat 500 & Opel Adam. The main rival to VW supremacy is the French manufacturer Peugeot. The other brands like Fiat, Ford, Opel, Honda, and Toyota are consider major rival of the VW brand. VW has an extensive range of models than many of its rivals. VW manages to get the better of the stiff completion it faces in Europe with far superior models and also the extensive model lineup make an impact on sales and the competition. The VW Golf over the year has become the car to beat, Ford Fusion, Opel Astra and Honda Civic are some models than have had a relative success as compared to Golf.

 

LATIN AMERICAN

VW’s Gol is the market leader in the South American market for over 25 years. Fiat is a market leader in the region but its models are quickly getting outdated in face of competition from other international manufacturers. Hyundai with its new model HB20 is aiming at Gol dominance .Ford, General Motors and Toyota are other brands having a manufacturing plant in the region. These relatively new players are aggressively pricing their product in the hope of getting market share away from VW. VW would be introducing Santana a mid-size saloon to compete with Renault Logan, Hyundai Versa, Chevy Cobalt. Chinese manufacture like Chery, JAC and Great Wall have introduce their models in the Brazilian market.

 

 

CHINA

VW has been present in China since about 30 years. GM’s Buick is its closest competitor. VW has two joint ventures one with the Shanghai Auto and the other with FAW. VW has the most extensive model range of all its competitors. The competition form global manufacture is getting fierce Toyota, Honda and Ford have had relative success in the last couple of years and are introducing model in the segments which VW still doesn’t have a reasonable presence. Chinese brands are successfully winning market share by offering competing model at a lower price. The three main Chinese manufactures are Geely, Chery and Lifan.      

 

Rahil Rupawala

 

 

Reference

http://www.bloomberg.com/news/2013-10-31/vw-rise-to-no-1-remains-elusive-as-u-s-sales-disappoint.html

http://online.wsj.com/news/articles/SB10001424127887324081704578233792237215364

http://www.thetruthaboutcars.com/2012/10/volkswagen-under-attack-in-brazil-here-is-the-order-of-battle/

http://europe.autonews.com/article/20121023/ANE/310239877/fiat-vw-face-brazil-challenge-as-gm-hyundai-threaten-their-dominance#axzz2rEeDcYn5

http://www.forbes.com/sites/joannmuller/2013/04/17/volkswagens-mission-to-dominate-global-auto-industry-gets-noticeably-harder/

http://www.autonews.com/article/20130421/GLOBAL03/130429991/gm-vw-china-rivalry-heats-up-as-both-see-3-million-auto-sales#axzz2rEK3a1bf

http://www.autoevolution.com/news/volkswagen-golf-production-reaches-30-million-61340.html

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