Maruti denies plans of using Volkswagen's Chakn plant

Maruti Suzuki, country's largest car maker, has denied the rumors, that it has plans to use VW Chakan plant to balance capacity constraints. company has categorically denied any speculation on its utilising Volkswagen’s Indian plant in Chakan, near Pune, to produce its cars on a contract basis to meet its capacity constraint, reported a leading business news paper. It is to be mentioned here that Volkswagen group has recently bought a 19.9 per cent stake in Suzuki.

There is no such thing at all. The India plan has not been concertised yet at all, a Maruti official quoted as saying to the news paper. Just few days back, a number of media reports claimed that Volkswagen is mulling the option of offer its greenfield plant premises at Chakan near Pune to other automakers for contract manufacturing.

Meanwhile, Maruti is expected to get access of Volkswagen's vehicle technologies and environment-friendly drive-train. This will certainly help the company in establishing a better access for its small cars in European markets. However, there is no announcement or confirmation from either of the company regarding such plans.

Maruti India currently has more than 50% market share in Indian automobile industry, with selling some of the segment leading and most popular cars in India including its best selling small car Maruti Alto, most popular premium hatchback Maruti Swift, and top ranked entry level sedan Maruti Swift Dzire. Company is going through a huge demand-supply mismatch as there is a long waiting period for some of its popular cars like Maruti Swift Dzire (3 months).