Suzuki - Volkswagen India plans

When auto giants come together they not only share the state of the art technology but also come with newer and better product range. From the official sources, it is out that the two auto biggies Suzuki and Volkswagen are soon to announce its plans for India by next year. The blueprint of the plan is that the auto manufacturers are likely to design vehicle and jointly manufacture products under its hood.

As per the Shinzo Nakanishi, Managing Director and CEO of Maruti Suzuki India (MSI) the two auto giants are in conversation about the aspects of the venture. Mr. Nakanishi confirmed that, may be sometime by the year end or the next year's beginning Volkswagen and Suzuki plan to disclose some of the projects. He did not commented on the current status of the discussion and refused to reveal the projects.

Mr. Martin Winterkorn confirmed that, Volkswagen is looking for a joint venture with Suzuki to enter the small car market of India which is ever growing and the decision on it will be taken within the first half of 2011. Last year Volkswagen purchased 19.9 per cent of stake of the Japanese car manufacturers Suzuki Motor Corp (SMC) for USD 2.5 billion and after that the auto giants have been looking for options of joint productions and more. Martin Winterkorn, Volkswagen AG Chairman said that, the German automobile makers will soon take a decision on the manufacturing of the small car according to the Indian standards with the Japanese expert by first half of 2011.

Volkswagen and Suzuki Motor Corp is planning to bring an advanced diesel engine technology to India. The reason for bringing the new diesel engine technology is that Maruti Suzuki India has been facing shortcoming in this department. The plan to introduce the new diesel engine is that almost 70 per cent of the sales of Maruti Swift and Maruti Dzire (entry level) is from the diesel engines and Maruti Ritz diesel variant contributes to 55 per cent in sale.

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