Volkswagen India Private Limited will now export parts and components of Volkswagen Vento to Malaysia where the cars will be assembled for the local market. And in the near future it plans the same with parts of Volkswagen Polo.
Volkswagen India has set up a parts and components business unit at its Pune Plant for exports.
Nearly 70 per cent of the parts exported will be manufactured and packaged at the Pune plant. The investment in developing the parts and components unit is Rs 56 crore (8 million Euro). About 215 new jobs will be created in the business unit at Volkswagen and its suppliers, the company said.
Volkswagen India has been exporting cars from its Pune plant from last one year as fully built units to markets such as South Africa, Sri Lanka, Nepal, Bangladesh, Malaysia.
With the parts and components business unit, the company marks the next step in its export business. It also supports the growth strategy of Volkswagen AG in the South East Asian region.
With this unit, Volkswagen India will export body parts and assembly parts of Volkswagen Vento and Volkswagen Polo to Malaysia where they will be assembled at the DRB Hicom Plant for the domestic market.
Commenting on this, Hubert Waltl, Member of the Board of Management of Volkswagen Passenger Cars Brand said, "Malaysia is a key market for Volkswagen in South East Asia region. Volkswagen Pune plant has the quality competence and perfectly fulfills the requirements to successfully export parts and components to Malaysia. The Parts and Components Business Unit is the next important strategic step for us to grow beyond the domestic market and contribute towards the growth strategy of Volkswagen AG in South East Asia region."
He added, "For our production plant, this is the next level of growth. Export is a future orientated business unit and it is our task to ensure that we fulfill the demand of the Malaysian market 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."
Source: business-standard.com