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Volkswagen may exit compact sedan segment in India in 2020

Volkswagen has stated that it may exit the compact sedan segment in India as the Ameo is not selling in good numbers.

Last Modified: Fri, Feb 08 2019.
Volkswagen may exit compact sedan segment in India in 2020

German automaker Volkswagen introduced the Ameo compact sedan in the Indian market in 2016. The Volkswagen Ameo was launched to take on the established players such as the Maruti Suzuki Dzire. But the Ameo failed to deliver the goods as it did not attract the buyers.

Now, ET Auto reports that Volkswagen does not want to be a part of the compact sedan segment post-2020. The Volkswagen Ameo was specifically designed for the Indian market and now the future of Ameo is uncertain as Volkswagen might not update the compact sedan.

Volkswagen stated that the company will not do any products like Ameo. The company also said that the sub-four-metre sedan is a very tricky product and it will only work when the hatchback it is based on is well under four metres in length.

The Volkswagen Ameo was not a successful product for the German automaker and it also cannibalised with other products such as the Polo and Vento. The sales of the Ameo dropped over 40 percent in 2018 and it is clear that Volkswagen will not introduce an updated Ameo in India. The Ameo also lags in the design department and looks plain and simple as compared to its rival and without an update, the Ameo will struggle in the Indian market.

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