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Volkswagen Sources Components from India

By Motortrend India Staff   |   05 October,2009

Volkswagen has started sourcing auto components from India for its European plants. And the company has announced that India will be one of the major sources of components for its worldwide market.

In India, Volkswagen has also set a goal to capture 8-10 per cent of market share in the passenger car segment by 2014. And this will be achieved by the company through a series of launch and by doubling its dealers in the country.

Volkswagen has started sourcing components to its Russian plant from India. The company has not disclosed the specific components that will be sourced from India. The company is expected to launch sourcing light systems, metals, and plastic related items for its European plants.

The main reason why the auto majors are interested in sourcing components from India and China is that the components made in these countries are 10-15 per cent cheaper than in Europe and the United States.

"We sold 1,800 units during Jan-August this year," said Jorg Muller, President and Managing Director of Volkswagen Group India.

Volkswagen is expected to launch the hatchback and sedan versions of Polo next year. And both the cars will be manufactured at plant in Pune.

Toyota, Renault, GM, Fiat, Renault, and Daimler are the other multinational companies that have made India a hub for components.

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