Volkswagen
AG will invest Rs. 1,500 crore in India over the next five to six years
on various activities such as localisation and new products, reports
from The Economic Times and Reuters stated.
VW India President and MD Mahesh Kodumudi hinted that the company might also start making its engines in the country, saying that the engine plant may rise in Maharashtra. Presently, 100 per cent of its car engines are imported.
The move is part of "Indianisation" or localising the production of engines, gearbox, and other car parts. Kodumudi said that the company plans to increase the local content level in cars from 65 per cent to 90 per cent.
Industry figures show that for VW's latest fiscal year, its passenger car sales fell 24 per cent to 52,525 vehicles, ranking it sixth out of 14 carmakers in the country. Despite this, India shows huge potential as only 13 out 1,000 people own a car.
Also, a study by IHS Automotive revealed that by 2018, India will become the third largest car market by unit sales in the world, beating Brazil, Germany, and Japan.
Since 2007, VW has already invested some Rs 4,400 crore in the Indian market. The company is now planning to expand its presence in growing segments of the local automotive industry, such as the compact sports utility vehicle and compact sedan segments.
source:- http://ibnlive.in.com
VW India President and MD Mahesh Kodumudi hinted that the company might also start making its engines in the country, saying that the engine plant may rise in Maharashtra. Presently, 100 per cent of its car engines are imported.
The move is part of "Indianisation" or localising the production of engines, gearbox, and other car parts. Kodumudi said that the company plans to increase the local content level in cars from 65 per cent to 90 per cent.
Industry figures show that for VW's latest fiscal year, its passenger car sales fell 24 per cent to 52,525 vehicles, ranking it sixth out of 14 carmakers in the country. Despite this, India shows huge potential as only 13 out 1,000 people own a car.
Also, a study by IHS Automotive revealed that by 2018, India will become the third largest car market by unit sales in the world, beating Brazil, Germany, and Japan.
Since 2007, VW has already invested some Rs 4,400 crore in the Indian market. The company is now planning to expand its presence in growing segments of the local automotive industry, such as the compact sports utility vehicle and compact sedan segments.
source:- http://ibnlive.in.com
0 comments:
Post a Comment