With the global economic slowdown affecting all industries, foreign investors in the automobile sector too are reviewing their investments plans.

The move has also affected the earlier stated production schedules of big ticket investors like Honda and Volkswagen.

Honda Siel, which is investing Rs 1,000-crore plant in Rajasthan for the Jazz small car, is now planning to roll it out of its existing Surajpur facility.

This would  push back the vehicle rollout date from the new plant by 6-12 months keeping in view the slowdown in the Indian market. The step would also aid in pruning its proposed investments as well as cut back on hiring for the second phase of the new plant.

On the other hand, Volkswagen is “going slow” with its greenfield plant in Chakan. However, company officials denied it and informed that there is no change in the India plans—in the speed of construction, installation, etc.

An official infact, revealed that the company expects to launch their first product from the Chakan plant in the first quarter of next year. The company plans to roll out its second product by the end of 2009 from its Pune line.

Buy Latest Cars at Discount Price &
Best Car Finance Option Comparison Online:
Audi Car Models, Chevrolet Car Models, Ford Car Models, Honda Car Models, Hyundai Car Models, Mahindra Car Models, Maruti Car Models, Mercedes Car Models, Mitsubishi Car Models, Skoda Car Models, Tata Car Models, Toyota Car Models, Volkswagen Car Models, Volvo Car Models

Add a comment

Posted by Nilakshi Handique on 7 November, 2008 12:41:05 PM IST #