Mumbai: Volkswagen began producing a small car (Polo) in India. Volkswagen Group board member Jochem Heizmann as recently reported by AP, said, "Our goal is to achieve a market share of 8 to 10 percent within four to six years, with three of the Volkswagen Group brands Audi, Skoda, and Volkswagen."Volkswagen Polo factory is located in Pune was opened in early 2009. This is part of the investment of 580 million euros ($ 846.8 million). VW said the "key element" in india strategy. Plant can produce up to 110,000 cars per year, and will be used to produce the Skoda Fabia, Polo and a sedan to be launched in the middle of next year.
Polo was launched in May in Europe and now the demand for the Polo reached 130,000, but until now has not announced Polo price. Volkswagen also bought 20 percent stake in Maruti Suzuki, Suzuki subsidiary in India to sell one of two cars in India.
Global auto companies such as Volkswagen, General Motors, Ford and Nissan is trying to lure the Indian consumer, accustomed to cheap small car. In order that the plan can be realized, they have to produce cars in India, so avoid the expensive import duties and keep production costs to remain competitive. The objective is to improve the localization of up to 80 percent of the total production from 50 percent now.
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