Volkswagen aims at increasing localization under its India 2.0 strategy

Volkswagen aims at increasing localization from the current 82 per cent to 92 per cent in the next two-three years under its India 2.0 strategy.

By: | Published: July 20, 2019 11:52 AM

Volkswagen, the German car manufacturer is soon going to take steps in order to increase its localization levels in India up to 92 per cent. This is part of the automaker's India 2.0 initiative. Volkswagen aims at increasing the localization levels to the said mark within the next two-three years time according to a top company official. Volkswagen, in sync with its subsidiary Skoda Auto, last year had announced its India 2.0 strategy under which it is going to invest Rs 8,000 crore for strengthening its operations in India.

Volkswagen Passenger Cars India CEO Steffen Knapp said that the company aims at increasing the current 82 per cent localization to 92 per cent within the next two-three years. He further added that the company has laid out six strategic priorities which it is going to focus on. These are namely people, brand, network, corporate business, loyalty and digitalisation. Knapp told reporters that the Rs 8,000 crore investments announced a year ago are on the engineering development centre along with the expansion of capacity at the automaker's Chakan plant which is located near Pune.

He further added that Volkswagen's first product under the India 2.0 strategy is going to launch in India during the year 2020. Knapp said that their organization is on the right path and that they are working relentlessly for the execution of their plan alongside investing a huge amount of money. All the new products from Volkswagen, for the Indian market, will be based on its new MQB platform. According to the car manufacturer, this new platform will have localization levels of up to 90 per cent. Knapp said that the company will look at increasing the sourcing of parts along with local suppliers.

Volkswagen has set a target to more than double its market share. At the moment, the company has a command over 1.4 per cent of the Indian market which it plans to increase to 3 per cent in the next two-three years time. In addition to this, Volkswagen will be looking at expanding its dealership network from the current 120 to 150. Not only this but in the near future, Volkswagen will be launching an all-new subcompact SUV in the Indian market. Knapp said that as far as electric vehicles are concerned, India needs proper infrastructural support. He said that "Coming to the EV point, there is no offer in the market. It is purely aspirational and it is in the right direction. but you have to see the market environment. The infrastructure is not here,"

Inputs: PTI

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