Today, Volkswagen is one of the world’s largest automobile manufacturers, owning brands like Audi, Porsche, Lamborghini, Škoda, and Bugatti. Its vehicles are sold in 153 countries, generating annual revenues of approximately 30.72 lakh crore rupees. Volkswagen has introduced more than ten car models in India and is set to launch two new ones on April 14: the Golf GTI premium hatchback (priced at around 52 lakh rupees) and the Tiguan R-Line SUV (around 55 lakh rupees).
The Birth of Volkswagen
On May 6, 1938, at a grand Nazi Party rally in Fallersleben, Germany, Adolf Hitler declared his vision of an affordable car for every German family—a vehicle that would be inexpensive, durable, and suitable for everyday use. This vision gave birth to Volkswagen, meaning “People’s Car” in German.
The origins of this dream date back to the early 1930s when Hitler sought an engineer to create a car that even German workers and farmers could afford. In 1931, Ferdinand Porsche founded an engineering firm that later became Porsche AG. In 1934, Hitler met with Porsche and entrusted him with designing an economical yet reliable car, leading to the creation of Volkswagen.
Early Days and the Impact of World War II
By 1937, Ferdinand Porsche had established Volkswagen, and a year later, he designed the first model, the KdF-Wagen, which later became known as the Beetle. On May 6, 1938, Hitler laid the foundation for the Volkswagen factory, initially named “Gesellschaft zur Vorbereitung des Deutschen Volkswagens mbH.” Alongside the factory, an entire city—Stadt des KdF-Wagens—was developed for workers, complete with housing, schools, and hospitals. This city was later renamed Wolfsburg, where Volkswagen’s headquarters remain today.
To fund Volkswagen, the Nazi government introduced a savings scheme called “Kraft durch Freude” (Strength through Joy), allowing Germans to buy a car through installment payments. However, when World War II broke out in 1939, the factory ceased civilian production and shifted to manufacturing military vehicles. As a result, citizens who had invested in the scheme never received their cars.
Post-War Revival and Expansion
By the end of World War II in 1945, Germany lay in ruins, and the Volkswagen factory was heavily damaged. Under British control, officials initially considered shutting down the plant due to concerns over product quality. However, British Army Major Ivan Hirst decided to revive production, initially for military use and later for the general public.
In 1948, Volkswagen was transferred to German ownership and became a key pillar of the country’s automobile industry. The Beetle quickly gained global popularity, reaching international markets by the 1950s. By 1955, Volkswagen had produced its one-millionth car, marking a significant milestone.
Volkswagen’s Global Success
The 1960s saw Volkswagen’s rise in the American market, where the Beetle was appreciated for its affordability and ease of use. In 1960, Volkswagen transitioned into a public limited company, boosting its expansion efforts. The brand continued to grow, acquiring multiple luxury and performance car manufacturers in the decades that followed.
Volkswagen entered India in 2001 and established its manufacturing unit in 2007. Today, the company operates 124 production plants across 27 countries and employs over 671,000 people worldwide. With more than 60 car models in its global portfolio, Volkswagen remains an industry leader.
Currently, Oliver Blume serves as the CEO of the Volkswagen Group, continuing its legacy of innovation and excellence.
Volkswagen’s Journey in India and Global Expansion
Volkswagen entered the Indian market in 2001. At that time, only a few premium cars were imported as Completely Built Units (CBUs), meaning the cars were manufactured abroad and then sold in India.
In 2007, Volkswagen established its own manufacturing unit in India, setting up a production plant in Pune, Maharashtra. Two years later, in 2009, production began at the Pune plant, which became a significant part of the company’s investment in India. Cars like the Polo and Vento started rolling out from this facility.
Volkswagen’s Rise as a Global Leader
In 2016 and 2017, Volkswagen became the world’s largest car manufacturer, recording its highest sales during these years. In 2019, the company sold 10.974 million (10.97 million) vehicles worldwide, marking a 1.3% growth.
Fourfold Revenue Growth in 20 Years
- 2000: ₹4.92 lakh crore
- 2005: ₹4.3 lakh crore
- 2010: ₹16.7 lakh crore
- 2015: ₹19.8 lakh crore
- 2020: ₹20.5 lakh crore
Volkswagen’s Global Presence
Currently, Volkswagen cars are sold in 153 countries, employing approximately 671,000 people. The Volkswagen Group operates over 124 production plants across 27 countries. Globally, the company offers more than 60 different models. The current CEO of Volkswagen Group is Oliver Blume.
Future Plans & Electrification Strategy
Today, Volkswagen is the parent company of renowned brands like Audi, Porsche, Lamborghini, Bentley, Škoda, and Bugatti. By 2028, the company plans to launch over 70 new electric vehicles and aims to sell over 1 million EVs annually. To achieve this, Volkswagen is investing ₹3.12 lakh crore in electric mobility.