Volkswagen to develop a new compact car with Maruti's help

It's been almost 6 months since the rumors of the possible synergy of Maruti Suzuki Indian Limited (MSIL) with German auto giant Volkswagen, have been doing rounds in the Indian market. It has been reported again and again that both the companies are planning to synergize the R&D (research and development) and manufacturing processes in the manufacturing of their cars in the Indian market. And now, if recent industry reports are to be believed, the Indian auto giant Maruti Suzuki is going to help Volkswagen to develop a new compact car in India in the sub Rs 4 lakh range. In return, Maruti will get Volkswagen's expertise in the production of diesel engines or even may directly source engines from the Wolfsburg.

Suzuki Motors, the leading Japanese car makers and a parent company of Maruti Suzuki, is believed to be working on its plans of synergizing with the Volkswagen Group in India. Mr Osamu Suzuki, Chairman of the company, is scheduled to visit India this week to talk to Volkswagen Officials on various ways of cooperation. It is believed, that both the companies will make some major announcement related to the contract manufacturing and joint product development.

It is to be mentioned here that Germany's largest car maker Volkswagen had acquired about 19 percent stake in the Japanese Suzuki Motors, last year. And now the company is eying to get benefited from Maruti's expertize in cost effective manufacturing through contract manufacturing and  joint product development.

Where, Maruti has been operating in the Indian market for more than 25 years now and is the largest car maker in the country, Volkswagen is a new entrant in the country and has recently launched its first ever compact-hatchback Volkswagen Polo, here.

Read More on : Volkswagen Polo