MINOR PROJECT REPORT

ON
“VOLKSWAGON”

Submitted for partial fulfillment of the degree of

“Bachelor of business administration (BBA)”

Management Education and Research Institute

Affiliated to Guru Gobind Singh Indraprastha University

Supervised by : submitted by :
Ms. Sarita yadav Sakshat sharma
Assistant professor Roll No.
MERI BBA 2nd sem.
 DECLARATION

I , Sakshat sharma , hereby declare that the minor project entitled “volkswagon” submitted by me
for the partial fulfillment of the degree of the “Bachelor of business administration (BBA) “

This project has been prepared under the guidance of Ms. Sarita yadav Assistant professor
(MERI)
 CERTIFICATION

This is to certify that the project work on “VOLKSWAGON” made by

Sakshat sharma , BBA , 2nd Semester is an authentic work carried out by him under
supervision of Internal guide : Ms. Sarita Yadav.

The minor project report submitted has been found satisfactory for the partial fulfillment of the
degree of Bachelor of Business Administration.

Mrs. Sarita Yadav

(Internal supervisor)
 ACKNOWLEDGEMENT

I would like to express my special thanks to Mrs. Sarita yadav for providing me an opportunity
to do this project . I sincerely thank her for the guidance , enthusiastic suggestions and
individual encouragement which helped me in the completion of the project .

I undertook this project , for extending the advice and direction that is required to carry on a
study of this nature , and for helping me with the intricate details of the project at every step.
without their support and guidance , it would have been very difficult to complete the project.

Lastly, I would like to thank all my respondents who offered their opinion and suggestions
through the project.
 S.NO PARTICULARS PAGE NO

Declaration
1 I

Internal guide certificate

2 II
Acknowledgment
3 III

4 Chapter 1: Overview of Industry

5 Chapter 2: Overview of Company:

· Introduction of company
· Organization Structure
· Product Line of Company
· Market Share of Company
6 Chapter 3: HR Policies of
Company

7 Chapter 4: Marketing Strategies of Company

8 Chapter 5: Financial Aspect of Company

9 Chapter 6: SWOT Analysis

Chapter 7: Findings, Limitations and

10 Recommendations

Chapter 8: Conclusion
11
 12 Bibliography

OVERVIEW OF INDUSTRY

INTRODUCTION

The Indian automobile industry has historically been a good indicator of how well the economy
is doing, as the automobile sector plays a key role in both macroeconomic expansion and
technological advancement. The two-wheelers segment dominates the market in terms of
volume, owing to a growing middle class and a huge percentage of India’s population being
young. Moreover, the growing interest of companies in exploring the rural markets further aided
the growth of the sector. The rising logistics and passenger transportation industries are driving
up demand for commercial vehicles. Future market growth is anticipated to be fueled by new
trends including the electrification of vehicles, particularly three-wheelers and small passenger
automobiles.

India enjoys a strong position in the global heavy vehicles market as it is the largest tractor
producer, second-largest bus manufacturer, and third-largest heavy truck manufacturer in the
world. India’s annual production of automobiles in FY22 was 22.93 million vehicles. India has a
strong market in terms of domestic demand and exports. In November 2023, total passenger
vehicle sales reached 3,34,130*. Sales of Passenger Vehicles in November 2023 have been the
highest, with a marginal growth of 3.7%, compared to November 2022. In FY23, total
automobile exports from India stood at 47,61,487. This sector's share of the national GDP
increased from 2.77% in 1992-1993 to around 7.1% presently. It employs about 19 million
people directly and indirectly.
India is also a prominent auto exporter and has strong export growth expectations for the near
future. In addition, several initiatives by the Government of India such as the Automotive
Mission Plan 2026, scrappage policy, and production-linked incentive scheme in the Indian
market are expected to make India one of the global leaders in the two-wheeler and four-wheeler
market by 2022.
MARKET SIZE

The Indian passenger car market was valued at US$ 32.70 billion in 2021, and it is expected to
reach a value of US$ 54.84 billion by 2027 while registering a CAGR of over 9% between
2022-27. The global EV market was estimated at approximately US$ 250 billion in 2021 and by
2028, it is projected to grow by 5 times to US$ 1,318 billion.

In November 2023, the total production of passenger vehicles*, three-wheelers, two-wheelers,

and quadricycles was 2.22 million units. In (April-November) 2023-24, the total production of
passenger vehicles, commercial vehicles, three-wheelers, two-wheelers, and quadricycles was
15.56 million units.
In the first quarter of 2023-24*total production of passenger vehicles, commercial vehicles, three
wheelers, two wheelers, and quadricycles was 6.01 million units.

India accomplished a significant milestone, with the sale of 8,32,434 EVs in 2023-24 (till August
2023).

The electric vehicle (EV) market is estimated to reach Rs. 50,000 crore (US$ 7.09 billion) in
India by 2025. A study by CEEW Centre for Energy Finance recognised a US$ 206 billion
opportunity for electric vehicles in India by 2030. This will necessitate a US$ 180 billion
investment in vehicle manufacturing and charging infrastructure.

According to NITI Aayog and the Rocky Mountain Institute (RMI), India's EV finance industry
is likely to reach Rs. 3.7 lakh crore (US$ 50 billion) by 2030. A report by the India Energy
Storage Alliance estimated that the EV market in India is likely to increase at a CAGR of 36%
until 2026. In addition, the projection for the EV battery market is expected to expand at a
CAGR of 30% during the same period.

The Indian automotive industry is targeting to increase the export of vehicles by five times
during 2016-26. In FY23, total automobile exports from India stood at 47,61,487. Indian
automobile exports of two-wheelers stood at 36,52,122 in FY23.
INVESTMENTS

To keep up with the growing demand, several automakers have started investing heavily in
various segments of the industry during the last few months. The automobile sector received a
cumulative equity FDI inflow of about US$ 35.40 billion between April 2000 - September 2023.
India is on track to become the largest EV market by 2030, with a total investment opportunity of
more than US$ 200 billion over the next 8-10 years.

Some of the recent/planned investments and developments in the automobile sector in India are
as follows

​
​ In November 2023, Tata Motors inaugurated its state-of-the-art Registered Vehicle
Scrapping Facility in Chandigarh.
​
​ In October 2023, Hero MotoCorp inaugurated its first state-of-the-art premium dealership
in India.
​
​ In October 2023, Tata Motors signed a definitive agreement to acquire a 27% stake in
Freight Tiger, a software-as-a-service (SaaS) company, for Rs. 150 crore (US$ 17.99
million).
​
​ India accomplished a significant milestone, with the sale of 8,47,439 EVs in FY24 (till
August 2023). A y-o-y growth of 209.17% was witnessed with 1.02 million registered
EVs in FY23, as compared to FY22.
​
​ In July 2023, Renault Nissan announced plans to invest US$ 1,68,762.86 (Rs. 1.4 crore)
to upgrade infrastructure at eight schools near Chennai.
​
​ In July 2023, Mahindra & Mahindra was in advanced talks with British International
Investment (BII) and some other global investors to raise up to US$ 602.72 million (Rs.
5,000 crore) for its electric vehicles (EV) unit.
​
​ In June 2023, Tata Motors announced to invest US$ 2 billion towards developing new
products and platforms over the next four years.
​
​ In June 2023, Hero MotoCorp revealed plans to invest up to US$ 180.81 million (Rs.
1,500 crore) for developing premium bikes and EVs in India.
​
​ In June 2023, Kinetic Green Energy and Power Solutions revealed plans to raise up to
US$ 100 million by selling a 10-15% stake in the company to investors.
​
​ In May 2023, Maruti Suzuki India revealed plans to invest over US$ 5.5 billion to double
capacity by 2030.
​
​ In April 2023, Power Finance Corporation Ltd (PFC) approved US$ 76.39 million (Rs.
633 crore) loan for 5,000 passenger EVs and 1000 cargo EVs.
​
​ In March 2023, the Central government sanctioned US$ 72.41 million (Rs. 800 crore)
under FAME India Scheme Phase II to Indian Oil (IOCL), Bharat Petroleum (BPCL), and
Hindustan Petroleum (HPCL), for setting up 7,432 public fast charging stations across the
country.
​
​ In the January-June period this year, Mercedes-Benz posted its best-ever half-yearly sales
in India at 8,528 units, a growth of 13% a year-ago. During the same period BMW and
Audi came at the 2nd and 3rd position with sales of 5,867 and 3,474 units, respectively.
​
​ In February 2023, Nissan and Renault revealed plan to invest US$ 600 million in India
over the next 3-5 years to expand their market share in passenger cars and electric
vehicles.
​
​ In February 2023, German luxury car maker Audi India began local production of the
Audi Q3 and Audi Q3 Sportback at the Skoda Auto Volkswagen India Private Limited
(SWIPL) plant in Aurangabad.
​
​ In January 2023, MG Motor India announced plans to invest US$ 100 million to expand
capacity, eyes 70% growth in 2023.
​
​ In January 2023 at the Auto Expo 2023, Tata Motors announced the launch Tata Altroz
CNG.
​
​ Tata Group Chairman, Mr. N Chandrasekaran said that "EV contribution in our portfolio
is likely to increase to 25% in five years and reach 50% by 2030, thus significantly
increasing investments in this sector“ in January 2023.
​ In January 2023, Global chief executive officer (CEO) Mr. Ola Kallenius said that India
was Mercedes-Benz’s fastest-growing market worldwide in 2022 and plans on investing
more.
​
​ Indian carmakers commit US$ 10 billion to add new capacity of 2.2 to 3 million units.
​
​ In December 2022, Mahindra & Mahindra invested Rs. 10,000 crore (US$ 1.2 billion) for
an EV manufacturing plant in Pune.
​
​ In November 2022, Maruti Suzuki India announced plans to spend nearly Rs. 7,000 crore
(US$ 865.12 million) on several projects this year, including the building of its new
facility in Haryana and the introduction of new models.
​
​ In October 2022, the total production of passenger vehicles*, three wheelers, two
wheelers, and quadricycles was 2,191,090 units.
​
​ In October 2022, Maruti Suzuki was India’s biggest car seller, with 136,700 units sold.
​
​ In October 2022, Hero MotoCorp sold 507,587 two-wheelers, the highest in the segment,
which gave it a market share of 32.31%.
​
​ In September 2022, Kinetic Engineering Limited (KEL) invested in Ahmednagar to set
up a dedicated production line with an initial capacity of 5,000 sets per month.
​
​ In September 2022, Maruti Suzuki launched the Grand Vitara at a starting price of Rs.
10.45 lakh (US$ 12,915).
​
​ In September 2022, Hero MotoCorp announced an investment of US$ 60 million in
California-based Zero Motorcycles to collaborate on the development of electric
motorcycles.
​
​ In August 2022, Volkswagen Group's Indian subsidiary, Skoda Auto Volkswagen India,
began a feasibility study for its next phase of investment in India after rolling out its India
2.0 strategic plan.
​
​ In July 2022, TVS Motor lined up fresh investments of Rs. 1,000 crore in EV push.
​ In April 2022, Tata Motors announced plans to invest Rs. 24,000 crore (US$ 3.08 billion)
in its passenger vehicle business over the next five years.
​
​ In March 2022, MG Motors, owned by China's SAIC Motor Corp, announced plans to
raise US$ 350-500 million in private equity in India to fund its future needs, including
EV expansion.
​ In March 2022, Hyundai plans US$ 79.2 billion investment through 2030, to focus
majorly on EVs.
​
​ In February 2022, a memorandum of understanding (MoU) was signed between electric
two-wheeler company Ather Energy and Electric Supply Companies (ESCOMs) of
Karnataka for setting up 1,000 fast charging stations across the state.
​
​ In February 2022, Tata Power and Apollo Tyres Ltd announced a strategic partnership for
the establishment of 150 public charging stations across India.
​ In January 2022, Kinetic Green Energy announced plans to invest Rs. 80-100 crore
(~US$ 10-13 million) in a two-wheeler EV project, in collaboration with Chinese EV
major Aima Technology Group.
​
​ Two-wheeler EV maker HOP Electric Mobility, a diversified business venture of Rays
Power Infra, is looking at investing Rs. 100 crore (US$ 13.24 million) over the next two
years to expand manufacturing capacity for its EVs.
​
​ Investment flow into EV start-ups in 2022 (until September 15) has raised funds worth
around US$ 673 million, according to Fintrackr.
​
​ In December 2021, TVS Motor Company and BMW Motorrad, announced a partnership
in the two-wheeler EV space, with plans to release their first electric two-wheeler within
the next two years.
​
​ In December 2021, Hyundai announced plans to invest Rs, 4,000 crore (US$ 530.25
million) in R&D in India, to launch six EVs by 2028.
​
 ​ A cumulative investment of Rs. 12.5 trillion (US$ 180 billion) in vehicle production and
charging infrastructure would be required until 2030 to meet India’s EV ambitions.

GOVERNMENT INITIATIVES

The Government of India encourages foreign investment in the automobile sector and has allowed
100% FDI under the automatic route. Some of the recent initiatives taken by the Government of India
are:

​ The FAME Scheme was extended for a further period of 2 years up to 31st March, 2024
​
​ In January 2023, under the FAME-II scheme, the Centre approved US$ 97.77 million (Rs. 800 crore)
for 7432 public fast charging stations.
​
​ In July 2022, Gujarat government announced a semiconductor policy, where it will set up Dholera
Semicon City and offer incentives for investment in this sector.
​
​ In July 2022, the Government amended the National Policy on Biofuels – 2018. The target of 20%
blending of ethanol in petrol and 5% blending of biodiesel in diesel by 2030 was brought forward to
2025-26.
​
​ As of July 15, 2022, under the FAME India Scheme I & II, a total of 532 EV charging stations have
been installed by oil companies under the Ministry of Petroleum and Natural Gas (MoPNG).
​
​ In February 2022, Mr. Nitin Gadkari, Minister of Road Transport and Highways, revealed plans to roll
out Bharat NCAP, India’s own vehicle safety assessment program.
​
​ In February 2022, 20 carmakers, including Tata Motors Ltd, Suzuki Motor Gujarat, Mahindra and
Mahindra, Hyundai, and Kia India Pvt. Ltd were chosen to receive production-linked incentives (PLI)
as part of the government's plan to increase local vehicle manufacturing and attract new investment.
The 20 automobile companies have proposed a total investment of around Rs. 45,000 crore (US$ 5.95
billion).
​
​ In the Union Budget 2022-23, the government laid out the following initiatives:
​
​ The government introduced a battery-swapping policy, which will allow drained batteries to
be swapped with charged ones at designated charging stations, thus making EVs more viable
for potential customers.
​
​ India’s National Highways would be expanded by 25,000 km in 2022-23 under the Prime
Minister’s Gati Shakti Plan.
​
​ In November 2021, the Union Government added >100 advanced technologies, including alternate
fuel systems such as compressed natural gas (CNG), Bharat Stage VI compliant flex-fuel engines,
electronic control units (ECU) for safety, advanced driver assist systems and e-quadricycles, under the
PLI scheme for automobiles.
​
​ In September 2021, Minister of Road Transport and Highways, Mr. Nitin Gadkari, announced that the
government is planning to make it mandatory for car manufacturers to produce flex-fuel engines after
getting the required permissions from the Supreme Court of India.
​
​ In September 2021, the Indian government issued a notification regarding a PLI scheme for
automobile and auto components worth Rs. 25,938 crore (US$ 3.49 billion). This scheme is expected
to bring investments of over Rs. 42,500 (US$ 5.74 billion) by 2026 and create 7.5 lakh jobs in India.
​
​ In August 2021, Prime Minister Mr. Narendra Modi launched the Vehicle Scrappage Policy, which
aims to phase out old polluting vehicles in an environmentally safe manner.
​
​ The Indian government has planned US$ 3.5 billion in incentives over five years until 2026 under a
revamped scheme to encourage the production and export of clean technology vehicles.
​
​ In July 2021, India inaugurated the NATRAX, which is Asia’s longest high-speed track and the fifth
largest in the world.
​
​ As of June 2021, Rs. 871 crore (US$ 117 million) have been spent under the FAME-II scheme, 87,659
electric vehicles have been supported through incentives, and 6,265 electric buses have been
sanctioned for various state/city transportation undertakings.
​
​ In May 2021, the Central Government approved a PLI scheme for manufacturing Advanced
Chemistry Cells (ACC) with a budget of Rs. 18,100 crore (US$ 2.33 billion).
​
​ In March 2022, four firms, namely Reliance New Energy Solar Limited, Ola Electric Mobility Private
Limited, Hyundai Global Motors Company Limited, and Rajesh Exports Limited, were elected to
receive the incentives.
ROAD AHEAD

The automobile industry is dependent on various factors such as the availability of skilled labor
at low cost, robust R&D centers, and low-cost steel production. The industry also provides great
investment opportunities and direct and indirect employment to skilled and unskilled labor. The
electric vehicles industry is likely to create five crore jobs by 2030.
In August 2022, the Indian government launched India’s first double-decker electric bus in
Mumbai. Looking long term, the government feels it is necessary to overhaul the country’s
transportation system. It is working to create an integrated electric vehicle (EV) mobility
ecosystem with a low carbon footprint and high passenger density with an emphasis on urban
transportation reform. The government's strategy and policies are intended to promote greater
adoption of electric vehicles in response to growing customer demand for cleaner transportation
options.

The Government of India expects the automobile sector to attract US$ 8-10 billion in local and
foreign investments by 2023. India could be a leader in shared mobility by 2030, providing
opportunities for electric and autonomous vehicles.
The Indian auto industry is expected to record strong growth in 2022-23, post recovering from
the effects of the COVID-19 pandemic. Electric vehicles, especially two-wheelers, are likely to
witness positive sales in 2022-23.
Notes: *Data except for BMW, Mercedes, Tata Motors & Volvo Auto

References: International Organization of Motor Vehicle Manufacturers, Media Reports, Press

Releases, Department for Promotion of Industry and Internal Trade (DPIIT), Automotive
Component Manufacturers Association of India (ACMA), Society of Indian Automobile
Manufacturers (SIAM), Union Budget 2023-24

“VOLKSWAGON”
DAS AUTO
(THE CAR )
 Made in
Germany.

OVERVIEW OF COMPANY

INTRODUCTION
The Volkswagen brand is one of the largest car manufacturers in the world. For more than 70
years, they have been making innovative technologies, the highest quality and attractive designs
accessible to many people – with the likes of bestsellers such as the Beetle, the Golf and the
all-electric ID. family for the new world of mobility. they are present in over 140 markets and
produce vehicles at 29 locations in 12 countries. The Volkswagen brand employs more than
170,000 employees.

They are setting themselves ambitious targets on the path to achieving climate-neutral mobility
for all. By 2026 they will bring ten new electric cars onto the road. By 2030, at least 70 percent
of our unit sales in Europe – and at least 50 percent in North America and China – are to be
electric vehicles. Volkswagen has set itself the goal of producing only electrically powered
vehicles in Europe from 2033. They are sticking to this ambition in principle. Depending on
market developments and the pace of the ramp-up of electromobility in the various European
countries, there may be shifts in the production planning of individual ICE models.

A central competitive advantage of the electrification of our fleet is the Modular Electric Drive
Toolkit (MEB). Volkswagen developed this vehicle architecture especially for electric drives; it
offers high ranges, lots of space in the interior and enables the software to be constantly up to
date thanks to over-the-air updates. The MEB is the technical basis for the all-electric and fully
connected cars in the ID. family, including models such as the compact

Volkswagen Group, major German automobile manufacturer, founded by the German

government in 1937 to mass-produce a low-priced “people’s car.” Headquarters are in
Wolfsburg, Germany

ORIGIN OF VOLKSWAGON
The company was originally operated by the German Labour Front (Deutsche Arbeitsfront), a
Nazi organization. The Austrian automotive engineer Ferdinand Porsche, who was responsible
for the original design of the car, was hired by the German Labour Front in 1934, and ground
was broken for a new factory in the state of Lower Saxony in 1938. The outbreak of World War
II in 1939 occurred before mass production could begin, and the factory was repurposed to
produce military equipment and vehicles. Volkwagen’s military involvement made its factory a
target for Allied bombers, and by the end of the war the factory was in ruins. It was rebuilt under
British supervision, and mass production of the Volkswagen began in 1946. Control of the
company was transferred in 1949 to the West German government and the state of Lower
Saxony. By that time, more than half of the passenger cars produced in the country were
Volkswagon

Volkswagen Beetle

A 1973 Volkswagen Beetle.

Volkswagen production expanded rapidly in the 1950s. The company introduced the Transporter
van in 1950 and the Karmann Ghia coupe in 1955. Sales abroad were generally strong in most
countries of export, but, because of the car’s small size, unusual rounded appearance, and
historical connection to Nazi Germany, sales in the United States were initially sluggish. The car
began to gain acceptance there as the 1950s progressed, however, and Volkswagen of America
was established in 1955. The American advertising agency Doyle Dane Bernbach was hired to
represent the brand in 1959, and the result was a landmark advertising campaign that helped to
popularize the car as the “Beetle” and promoted its size and unconventional design as an
advantage to the consumer. The campaign was very successful, and the Beetle was for
many years the most-popular imported automobile in the United States. Although
Volkswagen made many detail changes to the Beetle, the basic rear-engine design and rounded
shape remained the same. The company developed other rear-engine models with more-modern
styling and improved engineering, but none were as successful as the Beetle.
Competition from small cars with more-modern designs and the company’s increasingly troubled
finances eventually dictated a change in corporate philosophy toward developing
more-contemporary and sportier car models. As a result, Volkswagen began phasing out its
rear-engine cars in the 1970s, replacing them with front-engine front-wheel-drive designs. The
first of those new cars was the short-lived K70 in 1970, followed by the Passat in 1973. Most
significant, however, was the Golf, initially called the Rabbit in the United States, which was
introduced in 1974. The Golf was an instant sales success, effectively replacing the Beetle in the
company’s lineup and ultimately becoming Volkswagen’s best-selling model worldwide.

Volkswagen: manufacturing plant

A Volkswagen manufacturing plant in Bratislava, Slovakia.

Joint ownership of Volkswagen by the West German government and the state of Lower Saxony
continued until 1960, when the company was mostly denationalized with the sale of 60 percent
of its stock to the public. Since the 1950s Volkswagen has operated plants throughout much of
the world, including in Mexico, Brazil, China, and the United States. In addition to passenger
cars, the company also produces vans and commercial vehicles. Volkswagen owns several other
automotive companies, including Audi and Porsche in Germany, SEAT (Sociedad Española de
Automóviles de Turismo) in Spain, Škoda in the Czech Republic, Bentley in the United
Kingdom, Lamborghini in Italy, and Bugatti in France.
Volkswagen Jetta

A Volkswagen Jetta on display at the 2015 North American International Auto Show, Detroit.

(more)

In mid-2015 Volkswagen briefly held the distinction of being the world’s largest car
manufacturer by volume after surpassing Toyota Motor Corporation. However, shortly thereafter
Volkswagen faced a public relations crisis when the U.S. Environmental Protection Agency
(EPA) determined that the manufacturer’s diesel-powered cars contained software that altered the
vehicle’s performance in order to pass emissions tests. Volkswagen admitted to installing the
“defeat device,” and it recalled more than 10 million automobiles worldwide. In the United
States alone, the carmaker faced fines of more than $4 billion, and several Volkswagen officials
later were found guilty of various crimes. Despite the scandal, Volkswagen sales worldwide
continued to increase.

The post-World War II revival of the German automobile industry from almost total destruction
was a spectacular feat, with most emphasis centring on the Volkswagen. At the end of the war the
Volkswagen factory and the city of Wolfsburg were in ruins. Restored to production, in a little
more than a decade the plant was producing one-half of West Germany’s motor vehicles and had
established a strong position in the world market. Breaking away from what had become
standard design, the Volkswagen used a four-cylinder air-cooled engine at the rear of the car. It
also dispensed with the annual model change that had become customary with other automobile
manufacturers. Although the company had been founded by the German government, in the
1960s the government divested itself of 60 percent of its interest by selling stock to the public, an
unusual case of denationalization in an era when nationalization of industry was far more
common. In the same decade, Volkswagen acquired Auto Union, which evolved into its Audi
luxury car segment. In the late 1960s BMW rose from a builder of small, oddly styled Isetta cars
and motorcycles into one noted for high-priced passenger vehicles and premium motorcycles.
Opel became the base for the European operations of General Motors, and by the 1990s it
supplied much of the small-car engineering expertise for GM operations around the world;
however, Opel was sold to the PSA Group in 2017. Prior to its merger with Chrysler Corporation
in 1998, Daimler-Benz had developed diversified interests ranging from trains to aerospace
products. After Daimler and Chrysler split in 2007, Daimler-Benz was renamed Daimler AG.

With 120,000 employees in Germany,[103] VW is one of the most well organized labour
represented companies in the world and Germany. The role that Works Councils and IG Metall
play is unique even within Germany. VW workers have some of the strongest collective
agreements. VW has a strong tradition and practice of social partnership and
co-determination.[104]

Volkswagen agreed in December 2011 to implement a rule passed by the company's Works
Council aimed at improving work–life balance and avoiding burnout by restricting company
email functionality on the firm's BlackBerry smartphones to working periods and the half-hour
before and after working periods. About 1,150 of Volkswagen's more than 190,000 employees in
Germany were affected by the email restriction.[105]

Because of Volkswagen's use of IPPD,[106][107] a human contact allergen, in various polymers of

their vehicles, they have coined the term "Volkswagen dermatitis".[108]
ORGANIZATIONAL STRUCTURE OF THE COMPANY

The Volkswagen Group is one of the leading multi brand groups in the automotive industry. The
Company’s business activities comprise the Automotive and Financial Services divisions. All
brands within the Automotive Division – with the exception of the Volkswagen Passenger Cars
and Volkswagen Commercial Vehicles brands – are independent legal entities.

The Automotive Division comprises the Passenger Cars, Commercial Vehicles and Power
Engineering business areas.

The Passenger Cars Business Area essentially consolidates the Volkswagen Group’s passenger
car brands and the Volkswagen Commercial Vehicles brand. Activities focus on the development
of vehicles, engines and vehicle software, the production and sale of passenger cars and light
commercial vehicles, and the genuine parts business. The product portfolio ranges from compact
cars to luxury vehicles and also includes motorcycles, and is supplemented by mobility solutions.

The Commercial Vehicles Business Area primarily comprises the development, production and
sale of trucks and buses from the Scania and MAN brands, the corresponding genuine parts
business and related services. The commercial vehicles portfolio ranges from light vans to heavy
trucks and buses. The collaboration between the two commercial vehicle brands is coordinated
within TRATON SE, which is listed on the stock exchange.

The Power Engineering Business Area combines the large-bore diesel engines, turbomachinery,
special gear units, and propulsion components businesses. Until October 2020, it also included
the business of Renk.
The activities of the Financial Services Division comprise dealer and customer financing, vehicle
leasing, direct banking and insurance activities, as well as fleet management and mobility
offerings.

With its brands, the Volkswagen Group is present in all relevant markets around the world. The
key sales markets currently include Western Europe, China, the USA, Brazil, Russia, Poland,
Turkey and Mexico.

Volkswagen AG and the Volkswagen Group are managed by the Volkswagen AG Board of
Management in accordance with the Volkswagen AG Articles of Association and the rules of
procedure for Volkswagen AG’s Board of Management issued by the Supervisory Board.

Accordingly, responsibilities were divided between eight Board of Management positions until
December 31, 2020. In addition to the Chairman of the Board of Management, which also
includes the Volume brand group, the other Board positions were: Components and Procurement,
Finance and IT, Human Resources and Truck & Bus, Integrity and Legal Affairs, Premium, Sport
& Luxury as well as China. As of December 31, 2020, the board member for Finance and IT was
also responsible for Components and Procurement on a temporary basis, and the Chairman of the
Board of Management was also responsible for China.

In December 2020, the Supervisory Board decided to split up the responsibility for Components
and Procurement from January 1, 2021, replacing it with two new Board positions: Purchasing
and Technology. The new Technology Board position will be responsible for all Group
Components activities worldwide, the marketing of the Volkswagen platforms to third parties,
the development and manufacturing of battery cells as well as the associated procurement, the
areas of charging and charging systems and the corresponding joint ventures worldwide.

The Volume brand group comprises the Volkswagen Passenger Cars, SEAT, ŠKODA and
Volkswagen Commercial Vehicles brands. The Audi, Lamborghini and Ducati brands are brought
together in the Premium brand group. Sport & Luxury comprises the Porsche, Bentley and
Bugatti brands. Bentley will be allocated to the Premium brand group as of March 1, 2021. The
Truck & Bus brand group is the umbrella for the Scania and MAN brands.
We are convinced that this management model will allow better use of existing expertise and
economies of scale, boost synergy effects more systematically and accelerate decision making. In
addition, it will prepare the Volkswagen Group for a management structure that is simpler, leaner
and more effective, and strengthen the brands, giving them more autonomy. In line with the
principle of subsidiarity, decisions will be taken at the lowest competent level, close to business
operations, improving collaboration between the brands and the Group as a whole, leveraging
synergies and ensuring that management of the Group is a shared undertaking.

Each brand within the Volkswagen Group is managed by a brand board of management, which
ensures the brand’s independent and self-contained development and business operations. To the
extent permitted by law, the board adheres to the Group targets and requirements laid down by
the Board of Management of Volkswagen AG, as well as with the agreements in the brand
groups. This allows Group-wide interests to be pursued, while at the same time safeguarding and
reinforcing each brand’s specific characteristics. Matters that are of importance to the Group as a
whole are submitted to the Group Board of Management to be agreed upon, to the extent
permitted by law. The rights and obligations of the statutory bodies of the relevant brand
company remain unaffected.

The Volkswagen Group companies are managed solely by their respective management. The
management of each individual company takes into account not only the interest of its own
company but also the interests of the Group, the relevant brand group and the individual brands
in accordance with the framework laid down by law.

In addition, at Group level, Board of Management committees address key strategic issues
relating to products, technologies, investments, digital transformation, integrity and compliance,
risk management, human resources and management issues. We constantly revise and optimize
the committees in order to review their relevance and further increase the efficiency of their
decision making. This reduces complexity and reinforces governance within the Group.

The Best Governance module of our future program TOGETHER 2025+ is fostering our
Company’s transformation. One of its aims is to further improve manageability of the Group and
to make even better use of synergy effects. The establishment of the Car.Software Organisation
was just one way of further enhancing management of the Group in the reporting year.

PRODUCT LINE OF VOLKSWAGON.

The Volkswagen brand subdivides its vehicle projects into four product lines:

​ 1 Small (e.g. up! and Polo)

​ 2 Compact (e.g. Golf and Tiguan)
​ 3 Mid/Full (e.g. Passat and Touareg)
​ 4 Electric mobility

The Product Lines division manages product emergence – from concept to finished vehicle. With
us you will nurture and mature products right through to their end of life. You will also be
responsible for adherence to deadlines and the economic efficiency of vehicle projects. But most
importantly, you will also make sure that there is collaboration between the divisions, regions
and brands.

PRODUCTS OFFERED BY VOLKSWAGON IN INDIA :

 1. VIRTUS
2. TAIGUN
3. TIGUAN
4. T-ROC

1 VIRTUS

2 TAIGUN
3 TIGUAN

4 T-ROC
MARKET SHARE OF VOLKSWAGON
Although they have very little market share in India which is 1.64%, they continue to give us the
best product according to the engines and build quality . like polo and vento , these 2 products
were best at that time according to their engine capability , speed and build quality .

Volkswagon best thing is that they don't compromise while launching their products every time .
people says that their maintenance is very high , which is somewhere true because they are
germans and they give us products which is best not like maruti suzuki even though they have
the highest share in the automobile market in INDIA they make cars with low build quality and
compromises with their power and torque .

The real definition of sports cars under 20 lakhs is virtus with 178 - 250 NM of torque
HR POLICIES OF VOLKSWAGON

For Volkswagen, family-friendly human resources policies are a key aspect of being an attractive
employer and go a long way to achieving greater equality between the sexes. We therefore work
continuously on further increasing the proportion of women in leadership positions. Targets have
been set for every division in the company to encourage women with high potential in their
decision to aim for a career in management in the Company.
This approach is supported by many different measures including the cross-brand “Management
Mentoring Program”, which is designed to support women on the way to management positions.
Volkswagen has also launched the “Career with Children” project that supports young mothers
and fathers during and on their return from parental leave, helping them to continue their career
as effectively as possible. Volkswagen offers the “Compass” program specifically to encourage
women with high potential in their decision to aim for a career in management.

We use our German-wide Woman DrivINGAward and the Woman Experience Day to focus on
female engineering and computer science students and graduates, so as to recruit them for
technical positions at Volkswagen. We use target group-specific events to help the participants
understand our products and give them an insight into the attractive tasks in our Company.

In the reporting period, Volkswagen AG reached the target quotas it had set for the proportion of
women in management in accordance with the German law regarding the equal participation of
women and men in leadership positions in the private and public sectors: by the end of the year,
the proportion of women was 9.8% (target: 9.8%) in the first management level and 13.5%
(target: 13.3%) in the second management level. For the new period up to the end of 2021,
Volkswagen AG is aiming to have 13.0% women in the first management level and 16.9%
women in the second management level.

In addition, Volkswagen intends to raise the proportion of female skilled workers and forewomen
in Germany to 10%; in fiscal year 2016, the proportion of women in the Volkswagen Group in
Germany (without Scania, MAN and Porsche) was 7.6% working as skilled workers and 5.1% as
forewomen. In order to increase the proportion of female vocational trainees in the industrial and
technical area from the current 23.3% to 30%, Volkswagen specifically targets the recruitment of
women, for example by arranging special work experience and orientation days for young
women.

In the Volkswagen Group, a large number of operational arrangements are in force to enable
individuals to combine the demands of work and home. These include working time flexibility,
variable part-time working and shift models, leave of absence to care for close family members,
as well as on-site, company-run childcare facilities.
Volkswagen is continuously working on further improving these options. In September 2016,
Volkswagen AG introduced a far-reaching collective agreement for work performed outside the
facility (mobile work). At AUDI AG, staff have had the opportunity to work in any location and
with flexible working hours since October 2016, if this is compatible with the job tasks at hand.
The collective agreements have fulfilled employees’ request for greater flexibility with regard to
working time and the place of work.