At the recent launch of the new Taigo, VW South Africa revealed its exciting plans for the local market over the next few years.
VW wants to increase its footprint with strategic product launches, improve customer retention, and make it easier than ever before for car buyers to get into a new VW.
This is how the German automaker plans to do it.
2 SUVs per segment
VW South Africa said it is heavily focused on the A0 SUV segment, which includes most small SUVs/crossovers, as this category currently occupies over 46% market share in the country.
VW said it plans to capitalise on the staggering growth of the SUV category by launching at least two models in each of the segments it competes in.
VW already has the Polo and Polo Vivo in the hatchback segment which together occupies a 47.1% market share in the category, the T-Cross and T-Roc in the crossover segment which boasts a 31.1% share, the Tiguan and Tiguan Allspace in the mid-size SUV segment which maintains an 8.8% share, as well as the Touareg in the premium SUV segment.
The company also recently strengthened its positioning in the A0 SUV category by launching the Taigo, which it claims is the first crossover with a coupe body style in South Africa.
VW said that, with their unique designs and sizes, each of its new SUV offerings appeals to a different crowd making it possible for anyone to find a product that suits their needs within the VW stable.
Later this year, fans can expect the arrival of the new Golf 8 R as well as the high-performance Tiguan R.
Improved standard spec
VW said the repurchase rate for its customers currently sits between 35-38% and that it is pushing for this to reach a minimum of 50%.
To achieve this, the company is improving the standard specifications of its vehicles, starting with the Taigo.
This vehicle is only offered in Life, Style, and R-Line trims – each with a higher level of standard features than what would usually be fitted to an entry-level VW – in order to improve the value proposition for the initial buyer.
Additionally, VW said the enhanced specifications will increase residual value on the pre-owned market come selling time, due to the equipped features not relying as heavily on the optional extras fitted by the original owner.
Leasing options
In addition to enhancing the perceived value of its vehicles, the manufacturer wants to make it easier than ever before to get into a new VW.
Throughout 2022, VW South Africa said it will launch Guaranteed Future Value offers which will give the owner of the vehicle three options after they have owned the car for a specified amount of time.
These comprise:
- The option to buy the vehicle outright from VW
- The option to sell the car back to VW for a previously agreed-upon amount
- The option to sell the vehicle out of hand and pay back what they still owe VW as a lump sum
Moreover, VW said it will launch a leasing option for local car buyers later in 2022, but did not reveal exactly how this will work.
When asked about the upcoming trend of “pay-to-use” features, VW also said it is “looking at multiple solutions for mobility” but did not confirm whether it will launch these abilities in the near future.
At the end of 2022, VW said it expects to have sold over 64,000 vehicles in the domestic market, 2,000 of those being the new Taigo.
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