Defining Volkswagen’s experience in India as positive, Joerg Mueller, Volkswagen India President and Managing Director, presenting on ‘Big Bets on Technology and Manufacturing’ at the 24^th India Economic Summit outlined his views on how the Indian economy is expected to bounce-back over the medium-term and the growth prospects he sees emerging from the country. The summit took place in Delhi between 16^th & 18^th November and was organized jointly by the World Economic Forum in cooperation with the Confederation of Indian Industry (CII).

“Although the Indian automobile market is currently facing the global slow down in demand, we’re not worried about the mid term and long term perspective. We are watching the situation accurately but will stick to our investment plans,” Mr. Mueller said. “Compared to last years figures, the sales of the Volkswagen Group are growing.

From January to October this year we delivered 66 per cent more cars to customers than in the first ten months of 2007. And even in October 2008, compared to October last year, we had a plus of 35 per cent as the overall passenger car market decreased by six per cent.”

Said Mr. Mueller, “The perspective of the Indian automobile market is positive because of various reasons. The current passenger car density in India is still very low. The growing middle class population with a bigger disposable income will continue to rise.

With the growing number of youth in India and of course the government’s thrust on infrastructure development, we foresee a positive future especially for Volkswagen in India. This is encouraging us to provide an array of choices to our customers in the passanger car market which we look forward to rolling out from our Chakan plant by the first half year of 2009.”

Volkswagen is currently in the process of setting up a facility with a 1.1 lakh unit capacity at Chakan (Pune) with an investment of roundabout Rs. 3,600 crore which is announced to be inaugurated in spring 2009, one year ahead of the initial plan.

Commenting on how the business in India is evolving, Mr. Mueller said, “Since our entry into the country, Indian suppliers have become an integral part of Volkswagen’s sourcing strategy since we will be manufacturing cars in India for India and hence will use this network extensively. This also leads to a positive impact on the economy of the country at large since it boosts India’s position as a sourcing hub while also generating employment opportunities on a large scale.”

With the company all set to roll out its new models for the passenger car market from the Chakan factory by the first half of 2009, Volkswagen is positive on the growth potential the Indian market offers and continues to expand its presence in the country through new dealerships and the upcoming factory.

Courtesy: Volkswagen

Popular Volkswagen Cars available in India
VolksWagen Passat Highline DSG (Diesel)
VolksWagen Passat Highline DSG S (Diesel)

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Posted by Naresh Koshti on 20 November, 2008 7:37:53 AM IST #