Volkswagen to use India as base for global market

By SiliconIndia   |   Wednesday, 23 January 2008, 13:15 Hrs
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Bangalore: India might be selected by auto giant Volkswagen as its global base to make cars exclusively for the world market. Once the company starts making cars for the Indian market, it might also look at manufacturing models for the export market, said Andreas Prinz, Managing Director - Volkswagen passenger cars, India.

In Pune, Volkswagen is setting up around $800 million (410 million Pounds) production plant for manufacture of B / B Plus segment car specifically designed for India. The company will also have its own vendor base located around the manufacturing plant.

The car, which will be based on Volkswagen's new generation Polo model, is expected to hit the market in 2009. "The car made in India will have higher wheel base with better ground clearance and also have bigger capacity inside the car," Prinz said.

Out of about 4 lakh cars, which Volkswagen expects to sell in 10 years in India, 80 percent will be small cars. Prinz, however, ruled out any plans to compete with the lesser-priced cars in the country including the Tata Nano. "For us, profitability is the key and not higher market share," Prinz said.

Volkswagen car will be a premium small car and the engine of the car could either be 1.3 litres or below that.

($1 = 0.51 pound)

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