Volkswagen On Expansion Spree In India

By By: Vicky.in

Published: Tuesday, October 5, 2010, 12:46 [IST]

The German car maker, Volkswagen is planning to expand its presence in the Indian car market with the target of one million units in another 8 years. With Suzuki extending the technical know-how and the affinity with the Indian giant Maruti, Volkswagen is on a good track for getting refined engines, transmissions, product platforms for the domestic market. In 2009 VW sold 19000 units of combined product range of Skoda, Audi and Volkswagen.

The company"s CEO disclosed that wherever Volkswagen steps into the business, the primary target is to get 20% and for the Indian car market this target is set for another 8 years when the net share of the industry will reach 5 million units.

Volkswagen"s investment in India is Rs4500 crore for getting the capacity of 1.5 lakh units per year. Of late VW has been receiving good news for its sale of Polo and Vento. During the period of January -August 2010, VW sold 29,950 units making a growth of 160% from the sale figure of 11,503 units in the corresponding period of 2009. The CEO expressed the condition that if the current growth rate is consistent then the company will increase the investment to meet the sale target. VW tries to pin on the tie-up with Suzuki at a 20% share for making heavy joint projects especially compact cars. The CEO said that the tie-up is on the positive frame work making a right and forward direction.

Article Published On: Tuesday, October 5, 2010, 12:40 [IST]

Read more on: #automobile #indian car market #volkswagen

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