Volkswagen to manufacture engines and components in India.

Pune: Volkswagen AG, Europe's largest automotive manufacturer set up its operations in India last year. With investment totalling some 410 million euros (Rs 2,400 crore ), a full production plant with a press shop, body shop, paint shop and assembly lines are being built on the 230 hectare site in the Chakan industrial park near Pune in Maharashtra.The plant is slated to to begin operations in 2009 with an initial capacity of 1.10 lakh units.

Having started the sale of its 'Passat' luxury sedan in India last year,VW India Managing Director (Passenger Cars) Andreas Prinz and Vw India president Joerg Mueller has announced aggressive growth plans for the Indian market.

By 2012 they could be building as many as 240,000 cars a year in India with the production version of the 'up!' making up a large share of those. In addition to the up! VW will also build the the next generation Polo at the plant in Chakan. Although building the micro-cars in India for the local market would seem logical, there is also the possibility that they will export the cars from there to the US market.VW will launch its Jetta sedan later this year and is also bringing in the 'Phaeton' luxury car, SUV 'Touareg', apart from the iconic 'Beetle' to India.The original 'people's car,' Volkswagen's Beetle, is all set to roll out on Indian roads as the company plans to bring it by the middle of this year.

Although they would be importing engines initially, VW plans to manufacture engines in India for the local market and for export, as part of their long term strategy. The company is looking at using the extra land area at its plant near Pune to develop the component hub there and hopes that this will later cater to other entries into the market.

Source:-Machinist.in