Global automakers are making a beeline for small cars. German auto major Volkswagen AG is the latest to join the small car brigade. The company could be bringing its Up! model to the Indian market soon. The company commenced production of the compact hatchback Polo from its Chakan plant near Pune to capture an 8-10% share of India?s market in the next four to six years.
?While we started with the Polo, it is clear that we need another car that is smaller and positioned below the Polo. We are investigating different solutions and this could possibly be the Up! model, said Jochem Heizmann, Member of the Board of Management of Volkswagen AG, with responsibility for Group Production. The Volkswagen Up! series of city car concepts were earlier displayed at the Frankfurt Auto Show.
Terming the partnership with Suzuki Motor Corp as strategic, Heizmann said Suzuki complemented VW in a number of areas and they would be using Suzuki?s expertise in small cars. ?Suzuki is strong in key Asian markets like India and has strength in the small cars and lower priced cars where we look for a better cooperation. VW is strong in Europe and South America where Suzuki is weaker. VW has worked on hybrid and electric cars,? Heizmann said. VW has picked up a 20% stake in Suzuki Motor Corporation. VW?s Chakan plant, which opened earlier this year, is part of Rs 3,800 crore investment, the largest investment to date made by any German company in India. Volkswagen will produce three different models?the Skoda Fabia, which it has been making since May 2009, Polo Hatchback from now on and a saloon that will be launched in the second half of 2010, he said without giving more details. The Chakan plant has an annual capacity to make 1,10,000 cars and currently the factory makes 40 cars of the Skoda Fabia on a daily basis, Joerg Mueller, President and MD, Volkswagen India said.
The Polo is being produced for the Indian market but could be exported in limited volumes for some countries but not for Europe. We are investigating solutions, he said. Around 50% localisation has been reached for the Polo and we are aiming at 80% within the next two to three years, he said. The powertrain remains an open issue because of the variety of engines and gearboxes that would be needed, he said avoiding a direct reply to a query. The Polo would be sold through VW dealers of which 35 have been appointed and VW intends to scale these up to 40 dealers soon.