The German automotive major Volkswagen AG has said that the company is evaluating more models for introduction into India plugging in segment gaps, including the possibility of considering its new small car UP!
"While the immediate focus of launch of UP! is on Europe, we will consider this in other markets including India subject to feasibility studies. However, increase in localisation of content is vital for bringing in new models into India," according to Dr. Ulrich Hackenberg, Member of the Board of Management, Volkswagen Brand and Executive Vice President, Volkswagen Group. The company may also have to localise the cars to suit Indian requirements, he explained.
The India market is strategic for the Volkswagen Group and the immediate focus is on developing the local market rather than addressing exports business potential in the markets around it. The accent is to increase the localisation of content from 70 per cent and take it up to 75 or 80 per cent in the near future and even more, he said speaking to media at the Volkswagen Group stall in the Frankfurt Motor Show.
"The development of suppliers and vendors to meet our expectations is vital for the launch of more cars including small car UP! in India. Unless we have this we would not be able to be competitive. In fact, we are looking a development of the vendor network not only for India but for supply of parts for other manufacturing bases of the company located across the world," he said.
Mr Neeraj Garg, Member of The Board and Director Passenger Cars in India, told Business Line that the company business is looking up in spite of tough business environment for the automotive sector in India now. "Sales of Vento and Polo have boosted our position in India. The company has invested more than Rs.3,800 crore for the plant near Pune and we have the capability to produce up to 1,30,000 cars per annnum," he said.
The launch of more vehicles in India hinges on the feasibility studies we have in place for certain segments of cars. The idea is to fill these gaps, which could possibly be a small car, a seven seater, another sedan and possibly a sports utility vehicle.
"We are also developing the dealer network up from 77 now to 100 by year end, which will provide a wider reach," he said.