9APRIL 2024TOP STORIESVOLKSWAGEN TO EXPAND ITS PREMIUM PRESENCE IN INDIAThe rapid expansion of the highway network and the increasing purchasing power of consumers in India are driving up vehicle sales in the country, according to Michael Mayer, Volkswagen's executive director of international sales. He noted that India has surpassed Japan to become the world's third-largest vehicle market, a development that would have been unthinkable a decade ago.Mayer highlighted the impressive growth in India's automotive sector, with consumers showing an inclination towards not just smaller, cheaper cars but also larger and premium vehicles. He attributed this trend to improved infrastructure, increased road trips, and a growing demand for comfortable travel experiences with families.India's highway expansion efforts, which are set to add 13,814 km of highways this fiscal year, have contributed significantly to the growth of the automotive market. Mayer pointed out that India's total highway network length now exceeds that of Germany, which has a little over 13,000 km of highways.In 2023, new vehicle sales in India, including passenger vehicles and commercial vehicles, increased by 7 percent to 5.07 million units, surpassing Japan for the second consecutive year. Mayer expressed optimism about India's automotive market, projecting a growth rate of 5-7 percent this year, and reiterated Volkswagen's commitment to the Indian market. He emphasized that Volkswagen will continue to introduce premium products in India over the coming years. SAMSUNG ON TRACK TO HIT RS.80,000 CRORE REVENUE MILESTONESamsung India is on track to achieve over Rs 80,000 crore in total smartphone revenue for the current financial year, driven by a robust sales volume growth of about 12 percent, significantly outpacing the sluggish domestic market, according to sources familiar with the matter.The company experienced accelerated sales momentum, fueled by a trend towards premiumization, resulting in a 22 percent increase in average handset selling prices, surpassing the industry average of 17 percent. Additionally, the proportion of no-cost EMI purchases has risen from 54 percent to 60 percent during the year. Furthermore, the tenure for no-cost EMI schemes has been extended to 18 months from the previous 12 months.While Akshay Rao, Samsung India's General Manager for Mobile Experience Business, declined to officially confirm the revenue performance for FY24, he emphasized the company's strong growth trajectory in terms of value."In value terms, our domestic mobile phone sales have witnessed a 12 percent growth, surpassing the industry's growth rate of 8-10 percent. Our objective is to sustain growth ahead of the market, driven by a heightened focus on 5G handsets. For instance, in 2023, approximately 60 percent of our smartphone shipments to India were 5G handsets, a figure we aim to increase to 75 percent this calendar year," stated Rao.An industry executive noted that Samsung's mobile phone exports may have slowed down this year due to global recessionary conditions and consumer reluctance to spend in various markets. This situation has compelled many handset manufacturers, including Samsung, to adjust their production strategies.
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