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Indian supply base for Volkswagen's global small car
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Written by Vijay   
Friday, 27 June 2008

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Pune: Volkswagen has been holding discussions with a large number of Indian auto component manufacturers to supply parts for its India-specific car that it has also planned for the global market.

The German car maker has finalized some suppliers like Minda Industries Ltd which has bagged orders worth 50 crore to supply lamps for the small car in India and Russia.

Although Mr. Ulriche Proske, Volkswagen India Executive Director Finance, admitted that the company was considering Indian suppliers, he declined to provide any further details regarding the sourcing of parts or the potential markets for its compact car.

Based on the company’s plans revealed during the Auto Expo in January this year, Volkswagen’s India- based small car would be similar to its small car Polo and it is expected to hit the Indian roads by 2009-10.

Meanwhile in Frankfurt, with rising raw materials prices, Volkswagen is increasing its efforts to cut costs. Though large car makers such as Volkswagen usually sign long-term contracts to lock in steel prices, the price increases are felt when these contracts are to be renewed.

 
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