In line with other international automobile manufacturers such as Fiat and General Motors, Germany-based Volkswagen is looking at serving small markets in the Indian subcontinent from its manufacturing facility in the country.
Currently, Fiat and General Motors export cars to countries such as Sri Lanka, Nepal and Bangladesh, from India. Although volumes are very low, the companies see potential market opening in the neighbourhood.
If there are some opportunities why shouldnt we go there? Mr Joerg Mueller, President and Managing Director, Volkswagen Group India, told Business Line. Volkswagens newly inaugurated plant in Chakan, which has a capacity of 1,10,000, is meant for producing high volume cars, including Skoda Fabia, Volkswagen Polo, and upcoming small car models from the VW group companies.
He said that Volkswagen sedans Passat and Jetta would not be produced in the new facility at Chakan. Mr Mueller said that the immediate focus would be to serve the domestic market. The company will explore export opportunities from India at the later stage.
Beatle by year-end
He also reaffirmed the plan to introduce Volkswagens globally popular model Beatle in India by the end of 2009. The car will be introduced in India through the CBU (completely built unit) route.
The Volkswagen India-Project Head, Mr Ludwig Geerken, had announced at the Geneva Motor Show that the company would launch Beatle.
Mr Ulrich Hackenberg, Member of the Board of Management of Volkswagen Brand, said the company would start production at the Chakan plant with 50 per cent localisation and will increase it to 80 per cent by 2010. The company is in the process of identifying key suppliers in its effort to increase local content in its products.
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