Securing a considerable stake in the Middle East will help Volkswagen achieve their target of becoming the world’s largest car producer by 2018. Some experts have even predicated that the company may even reach that target before then. Other reports claim Volkswagen will be able to overtake Toyota by the end of this year!
Stefan Mecha, who is the Head of Volkswagen’s Middle Eastern operations, claims that the company need to start slowly before taking off and getting larger within the region, which is a very tough one to crack.
He was quoted to have said “What we have seen is that VW is successful among the European brands, but these account for only six per cent of the entire auto market in the region,”
He continued to say “This is why VW got interested in putting its feet on the ground here and thus taking a long-term perspective to developing market share.”
He also believs that the companies new models can sell well when compared to ones that have done well so far in the region. When looking at the sales figures of the Volkswagen Jetta, it appears that he hasn’t been let down in that respect.
“While we have great heritage models that have done well — such as the Touareg — it’s time for the new models to start pulling their weight.”
“We can’t obviously build a customer base overnight, but what we have seen in the four months since the launch is that more Jettas were sold than in the same while last year. This is a segment seeing a lot of volumes and the car is making its way.”
Volkswagen are also hoping to improve their fleet business, a market in which they have been lacking. Mecha said “We are fully aware of the necessity to enter the fleet business as in some of the markets here these account for 50 per cent and more of the overall unit sales.
“Our rent-a-car volumes are rather low — the new models will come and then we can start capitalising. Our fleet share will definitely increase, but finding a balance with sales to individual buyers is important.”
Volkswagen appears to be making huge strides all over the world to reach their 2018 target.