Volkswagen, Europe’s largest automaker is having a top-down approach in launching cars in India. And inside the span of two years the automaker intends to bring its small car followed by what appears to be a mini car underneath the Maruti 800 category to India.
After recently announcing that it’ll start introducing the brand new Passat since it’s entry vehicle in India, Volkswagen intends to launch next what it calls the A-Class, the Golf, and its derivatives. Based on Pierre Bruedgam, a member from the board purchasing, Volkswagen India, “We will launch a new car each year. This season, it’s the Passat sedan, a B class car, which will be launched in September. As well as for next year, the A category, which comprises the Golf and its derivatives are going to be launch. It’ll then be followed by volume segment small car which is offered as notchback and hatchback for 2009. Within our terminology, the little car is A Zero Class. We’re also looking at the A Zero Class, which is the equivalent of the Maruti 800.”
Mr. Bruedgam was in Pune for the inauguration of it’s off site office and also at the same time wanted some interested local sourcing for that e410 million, 110,000-capacity car plant at Chakan. Volkswagen India is expecting to reach the 110,000 capacity by 2009 because it launched its small car, the Golf and its derivatives.
And since India is regarded as much more of a sedan market, Volkswagen India would try to market sedans like the Passat after which follow it track of the Golf and its derivatives. For any great a part of its proposed lineup the automaker is expected to retain 55:45 ratios between diesel and petrol. Mr. Bruedgam further added, “We will begin our sourcing activities from April, first for the cars to become made here as well as the global market.”
Volkswagen officials after visiting India saw that a single purchase office may not be enough and asserted they might need to open other offices in the other two auto hubs situated in Delhi and Chennai. VW officials have also stated that logistics is an important consideration when sourcing for global operations if the company aims to stay competitive. They also added that Europe’s largest automaker will also have some of their metal products from India particularly because of its needed volume products. And since a lot of VW cars are required to be sold in India, the automaker would also ensure that aftersales services for example repairs are created available to the customers that’s, aside from the Volkswagen Repair Manuals that goes with the vehicles.
Mr. Bruedgam also said that the localization program being employed by Volkswagen expects to obtain 50% local content hopefully at the beginning of production last year. When it comes to its volumes car, the automaker is expecting an increase of 75% by the year 2011. Dr. John Chacko, an associate from the board technical, VW India, said, “We will source from India for volume models like the Golf and it is derivatives, in which the same part may be used. VW is expanding its platform theme to some module strategy, that allows us to make use of the module anywhere in the world.” Other VW group companies like Audi and Skoda are also likely to source out from India.
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