Maruti to gain from Suzuki-Volkswagen partnership

Japan based leading car maker Suzuki Motors is planning to develop new cars in partnership with leading German car maker Volkswagen for its global portfolio. The synergy between these companies could create new opportunities for Suzuki's  Indian subsidiary Maruti Suzuki.  On Tuesday, during his visit to India, Suzuki chief Osamu Suzuki said in a statement given to a leading news daily in India that his company has been searching for ways to synergize operations with Volkswagen after it bought a 19.9% stake in Suzuki last year. He added that the vehicles would be sold in the global markets in case the joint product development happens.

In India, both Maruti and Volkswagen are in talks for a possible synergy in the Indian market since last few months but any official statement in this regard is yet to be made. According to some recent news reports, Maruti Suzuki India may help the German auto giant in development of a new compact car in the Indian market in the price range of Rs 4 lakh. With this, the German car maker is also eying to make the most of Maruti's expertise in cost efficient manufacturing. On the other hand,  Maruti will get benefited by Volkswagen's expertise in the production of diesel engines or even may directly source engines from the Wolfsburg.

Volkswagen is a new entrant in the Indian market and until last year it was only selling two premium sedans in the Indian market including Volkswagen Jetta. But now, as the company is planning to strengthen its grounds in India, the partnership with India's largest car maker will help it in a big way. The company has recently launched two new models in the volume driving segment including hatchback Volkswagen Polo and sedan Vento.

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