Interview with Volkswagen's General Manager on the New Tiguan
We sat down with Thomas Mills, General Manager of Volkswagen Middle East, during the launch event of the new Volkswagen Tiguan. You can read the interview below. Special thanks to Mohamed Shahada for conducting this interview.
What are the key advantages of the Tiguan over its competitors?
That's a great question. Volkswagen has always represented luxury, even considering our pricing and what we offer. Our direct competitors include Japanese cars, for example. In this segment, there are several vehicles such as:
- Toyota RAV4
- Honda CR-V
- BMW X3
Honestly, while my answer may sound arrogant, I believe the Tiguan can outshine them all, especially considering our pricing. Everything ultimately comes down to price. The current 2015 Tiguan starts at around 92,000 AED. We haven't finalized the pricing for the 2016 model yet, but I think it will be similar. The size, comfort, practicality, safety features, and modern technology (such as the heads-up display and additional control unit) offered by this vehicle are not available in many of our competitors' models, and customers are asking for them. So, if we set the right price for this car, it will undoubtedly be a leading vehicle in this segment.
What is the key factor that makes the Tiguan superior to the Audi Q3?
The key factor is Volkswagen's SUV platform – the MQB platform, which gives it an edge over the Q3. I believe the only hurdle is that we won't be able to launch it before August 2016.
Why did you postpone the launch to the last quarter of the year?
This is when the vehicle will be available. We just started designing it last week. Therefore, we began in January and it will continue until August before we launch it in Qatar and the Gulf countries. The initial launch is expected to be in Europe in March.
When will it be launched in the Gulf, especially in Qatar and the UAE?
The new Tiguan will be launched in August 2016 in the Gulf countries and Qatar. It is set to hit the European market in March 2016.
Mr. Mills added that August is the earliest date they can launch the Tiguan since production started in January, and re-manufacturing takes about 2-3 months.
What is the expected market share for this vehicle?
The previous Tiguan model (2015) sold 2.6 million units globally. The biggest challenge in the Gulf is that we lack the market information we need, such as size or registration data for this region. It's a significant gap; we don't even know how many units our competitors have sold. There are countries like Kuwait, Bahrain, and Oman that have registration data, but Qatar and the UAE do not. Having market share data is crucial because it allows you to compare your car with competitors and to keep track of developments in this segment.
In terms of numbers, what are your expectations this year compared to last year?
There is no concern regarding the new Tiguan. We expect the updates on the Tiguan to exceed the current market situation. People in Qatar and this region are still buying cars due to the lack of public transportation. Here, people need a vehicle to get from one place to another. Thus, with the Tiguan available for a full year, we expect to sell 20% more than last year. This is achievable with the new car. It’s very attractive and meets the current market needs. Overall, if Volkswagen's sales across all its models are similar to last year, I would be extremely happy.
Who are the main customers of the Tiguan? How would you classify them?
When we look at Tiguan customers, 90% of them are women. It’s a somewhat feminine vehicle, which is attributed to the seating position and the beautiful design that isn’t overly aggressive or masculine. However, the new Tiguan is expected to appeal to a different audience. It’s like a smaller Touareg. This year, the customer profile will be broader than before. In the past, it was a specific and small group interested in purchasing the Tiguan. With the new design, quality, interior, and exterior features, along with a power of 220 horsepower, we will attract a wider range of customers for the Tiguan.
Considering the sharper design, larger engine, and other changes between the 2015 and 2016 Tiguan models, can we say that the new Tiguan targets a younger demographic this time?
In the Gulf countries, the situation is different because most residents are young. The majority of the age group here is between the twenties and thirties, and perhaps this is the age range we are targeting with the Tiguan. However, we are also targeting those in their early forties, as this vehicle meets the needs of various demographics. It’s fun to drive, spacious but not excessively so, making it suitable for small families, and in terms of performance, it also has capabilities for off-road driving. This car will leave a mark.
