Volkswagen and Maruti to make product platforms

The top automaker of  Europe, Volkswagen is planning to ramp its investment through many ways. In fact, the company has decided to sell around one million cars by the year 2018. With the association of Maruti, Volkswagen will be developing transmissions, product platforms and common engines to manufacture cars for the market of India. In the year 2009, this group was able to sell 19,000 units across various brands – Skoda, Audi and Volkswagen.

Volkswagen CEO Martin Winterkorn stated that they are clear in their aim and any country where the company produces cars, it wants a share of around 20%. He further added that the company hopes to reach its aim in India by the year 2018. Till then the total market size is expected to rise to around 5 million units. This year, during the period between January and August, the Volkswagen group sold 29,950 units.

The present investment of Volkswagen Group in India is more than Rs 4,500 crore. It has the production capacity of 1.5 lakh cars. The sales of the group are speedily moving up and the group has also introduced several new models which include Volkswagen Vento and Volkswagen Polo. Even Skoda and Volkswagen intend to introduce several models which will also include the small cars with low prices. Winterkorn also commented that if the market of India keeps on growing in that manner then they will have to increase investment substantially with the company’s sales target. But the big changer of game for the company’s India plans can be its around 20% stake in Suzuki. Suzuki and Volkswagen are excitedly discussing their combined plans as partners and they are focusing on India as a key area.

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