VW has big plans for India

28 May, 2008

Aimed at meeting domestic as well as foreign demands, Volkswagen plans to make engines in India. The company has plans to manufacture a range of small cars in India.

It is expected that the car makers would roll out its Jetta Sedan and Phaeton, luxury cars and the iconic Beetle soon here. The leading German car maker had made its foray into the Indian car market in 2007.

Going by the growing sales, the company is expected to reap rich yields from its Indian operations. It has been reported that as a long term strategy, the luxury car maker would manufacture engines in India to meet the growing domestic demand. It will also be supplied into foreign markets.

The company ventured into India with its luxury sedan brand named Passat and the awe-inspiring SUV Touareg. The German auto major would also launch and manufacture a range of small cars in India in the coming years, said auto industry sources. To increase the sales locally and to ensure the cost-competitiveness and to maintain low costs in service , the company is looking at the local vendors.

According to news reports, VW’s expansion strategy for India involves an investment of nearly Rs 2, 400 crore and is also setting up a plant in Chakan in Maharashtra. The plant will be ready for production by year 2009 with the initial capacity of 1.10 lakh units.

This apart, the company is also expected to see an Indian version of VW’s compact car by the end of 2009. This, experts say, will be the first small car from the company in India.