Volkswagen India Pvt Ltd has set up a unit to manufacture and package parts of the Vento and Polo for export at its Pune plant.
Announcing the inauguration of the parts and components Business Unit, the company said it has invested around Rs 56 crore to develop it.
The company added that it will begin with export to Malaysia.
The Indian export parts will contribute to approximately 70 per cent of the car which will then be assembled for the local market at the DRB Hicom Plant.
Volkswagen India has been exporting cars from Pune since last year as fully built units to markets such as South Africa, Sri Lanka, Nepal, Bangladesh, Malaysia and the left-hand drive version of the VW Vento to West Asia.
About 215 new jobs will be created in the parts and components BU at Volkswagen and its suppliers.
“Apart from the Malaysian market, if there is a demand from any other region for parts and components, we are on the pole position to support,” said Andreas Lauenroth, Executive Director Technical, Volkswagen India.
Localisation
Currently, Volkswagen cars in India are localised to the extent of 70 per cent, and the company has plans to localise further by building engines and gear boxes, if the volumes support this.
“It will be the next logical step if the numbers grow,” said Alexander Skibbe, spokesperson for VW India.