Bangalore, Feb. 19 German automobile major Volkswagen plans to make India an export hub for components in the next five years.
“With the knowledge available in the market, we are already localising parts for our soon-to-be launched Polo from India,” said Mr Maik Stephan, Managing Director, Volkswagen Group Sales India, on the sidelines of the inauguration of the auto company's third dealership in Bangalore.
According to him, currently about 50 per cent of parts are being localised for Polo, and this will “increase to 70-80 per cent,” he said, without giving details of when it would be done so. “We are looking for independent successful suppliers who would work as our partners,” he added.
Successful localisation of components would mean that the company could look at making “India an export hub for components in the mid-term perspective,” said Mr Stephan. The company also opened its spare parts logistics centre at its Aurangabad plant in July 2009.
The auto major is readying itself for an “official market launch of the Polo in India” and expects a bigger growth rate in India. The group sold about 19,000 cars in India in 2009 (including Volkswagen, Audi and Skoda). The current order-book in India for the recently-launched Beetle stands at 330 units, of which 100-odd cars have been delivered so far, said company officials.
Between these two to-be-launched cars, the company is looking at a market size of about three lakh units, and volume play will be the company's focus.
Source : Business Line