Volkswagen's premium position bodes well for increased competition – executive
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As more brands are introduced into Australia – all fighting for a slice of the sales pie – VW considers its perception as a premium brand a distinct edge.
Volkswagen’s established position as a upmarket brand in Australia is considered a strength for the brand as newcomers enter the market, according to a senior executive.
General Manager of Corporate Communications at Volkswagen Australia, Paul Pottinger, told Drive the German brand was well-placed amid the rush of new models being introduced locally – many of which are from China.
“I think there already exists that perception [of Volkswagen being a premium brand] in Australia,” Pottinger said.
The comments come as Japanese car makers such as Honda and Mazda attempt to reposition their vehicles upmarket as ‘premium’ in the face of increased competition.
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“Our brand position is well established in terms of that perception. I think the task of the brands [which] self-proclaimed to be prestige or have ambitions to be prestige, I think theirs is a much harder rock to roll up that hill,” Pottinger told Drive.
“And that has long existed and I think justifable, that that’s where Volkswagen – and indeed European brands in general – sit, in a somewhat premium position in terms of a mass market.”
While acknowledging Audi as its prestige offering within the Volkswagen Group – before getting to high-end luxury products such as Bentley – the PR boss said the company considers all of its brands, including Cupra and Skoda, to be “premium relative to their position in the market”.
“I think that puts us in a far sounder position in terms of broader acceptance than a brand which has decided they are now prestige,” he added.
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However, not all European car manufacturers have been able to weather the increased pressure from fresh brands, with Citroen announcing recently it was leaving Australia after 101 years of operation.
“It’s sad to see anyone leave, and Citroen certainly had its enthusiasts and advocates – but the numbers spoke for themselves,” Pottinger said, admitting to having not “kept abreast” of the brand’s movements in recent years.
While Volkswagen sales are down in Australia 12.5 per cent to the end of August compared to the same time in 2023 – against an overall market which is up 5.3 per cent – the German brand recently announced it was launching eight new models over the next year.
Among those coming are the new Volkswagen Golf hatchback, the Tiguan SUV, and Multivan people-mover, as well as the electric ID.4, ID.5, and ID. Buzz models.
The post Volkswagen’s premium position bodes well for increased competition – executive appeared first on Drive.
