Volkswagen to export small cars from India

Published On Feb 04, 2010 11:53 AM By Vidyadhar

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Volkswagen AG, Germany based car manufacturer is all set to fully establish its manufacturing facilities in India so that it can make India as its exporting hub for small cars. As Volkswagen's global competitors Maruti and Hyundai are exporting a large number of small cars from India, the company is looking to eat into the market share of these companies specially in small car segment. Volkswagen will start exporting its vehicles from second quarter of the upcoming fiscal to the markets like South-East Asia, Middle-East and Africa from India. Company will be exporting fully-built models as well as completely knocked-down kits (of its hatchback Polo) from its Pune facility.

Volkswagen Polo, which is quite popular in European market will be launched in India by the end of this month. The hatchback Polo will be launched in India in a price range of Rs 4.5-6 lakh which is around half the price of this model in European market as company managed to cut down its cost by using 80% domestic auto parts. The low price tag will help the model to compete in Indian market with popular models in its range like Hyundai i20, Maruti Ritz and Fiat Punto.

The export segment in India has grown by 30% (accounts for 3.3 lakh units) in the first three quarters of this fiscal. Hyundai remained the biggest exporter as it has exported 2.15 lakh units as compared to 1.05 lakh units of Maruti. Volkswagen has set a manufacturing target of 50,000 units for its premium hatchback Volkswagen Polo in year 2010 from which 35,000 units will be sold in Indian market and remaining will be exported by the company.

Cars to look forward to this quarter are Ford Figo and Tata Aria that will be launched in the month of Feb and March respectively

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