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NEW DELHI: wants to increase its sales in to a million cars by 2018 when the German carmaker hopes to become the worlds number one car company, ahead of Toyota and general Motors, a top official said.
The company can do this by replicating its Chinese success story in India, said Martin Winterkorn, Volkswagen global CEO.
Our market share in is roundabout 20% and it fits our target in India as well, he said.
Volkswagen expects the Indian market to become five million cars strong by 2018 and it aims to garner a one-fifth share in the market by then through its different brands, Mr Winterkorn said.
In India to visit Volkswagens 110,000 units-a-year plant at Chakan in the outskirts of Pune, he said volumes in India was the most important thing for the company.
We are strong in India and we feel we have the best cars for India, he told ET.
The German carmaker is looking at jointly developing a small car for India with Suzuki Motor, in which it took a 19.9% stake late last year.
This is one of the ideas that were discussing, said Mr Winterkorn. We are in discussion and I think by the end of the year we will be clear.
Mr Winterkorn had recently stated that he hopes to take Volkswagen past Toyota and General Motors to become the worlds largest carmaker by 2018.
The German giants volume target to get past GM and Toyota in the world automobile pecking order is to sell 10 million cars in the next eight years. And thats where the growth markets of India and China will prove crucial for the company.
India is very important for us because in markets like China and India, volumes are improving whereas in Europe sales are stuck at the same level, Mr Winterkorn said.
VW sold around 1.3 million units in China between January to August this year, up 41%.
Globally, VWs 2010 sales through August were 4.7 million vehicles, up 13.4%. In the first half of 2010, it nearly tripled its net profit to $2.5 billion.
The India picture is crucial enough for Volkswagen to push for greater cooperation with new partner Suzukis crown jewel Maruti.
If Suzuki joins VW, their combined volumes already exceed Toyota, thanks mostly to Marutis top gear performance.
This is unlikely, but the two companies are looking for synergies in the Indian market.
Besides exploring the possibility of jointly developing a small car, the companies are also considering the option of the Japanese company sourcing small diesel engines from the German firm, Mr Winterkorn said.
Suzuki currently has only one diesel engine, which it sources from former alliance partner
Fiat. The company is desperate to increase its diesel portfolio given the rising popularity of diesel cars in India.
This is one of the areas we are talking about and it is known that we have very good diesel engines and one of them fits nearly all Suzuki cars, Mr Winterkorn said.
Apart from the alliance with Suzuki, Volkswagen is also investing heavily in India on its own. So far, it has invested Rs 3,500 crore in its factory in Chakan.
The company kicked off its Indian production with the launch of its small car Polo earlier this year. More recently, VW India launched its volume sedan Vento with a price tag of just under Rs 7 lakh.
Its product range in India includes the Passat, Touareg, Phaeton and Beetle apart from the Polo and Vento.
GM was the world number one carmaker from the 1930s till two years ago when its financial troubles pushed it off the top spot. Toyota quickly moved in to claim the title, but recall worries has hit the Japanese carmaker enough to make its stay at the top uncertain.
Volkswagen aims to replicate Chinese success story in India - The Economic Times
The company can do this by replicating its Chinese success story in India, said Martin Winterkorn, Volkswagen global CEO.
Our market share in is roundabout 20% and it fits our target in India as well, he said.
Volkswagen expects the Indian market to become five million cars strong by 2018 and it aims to garner a one-fifth share in the market by then through its different brands, Mr Winterkorn said.
In India to visit Volkswagens 110,000 units-a-year plant at Chakan in the outskirts of Pune, he said volumes in India was the most important thing for the company.
We are strong in India and we feel we have the best cars for India, he told ET.
The German carmaker is looking at jointly developing a small car for India with Suzuki Motor, in which it took a 19.9% stake late last year.
This is one of the ideas that were discussing, said Mr Winterkorn. We are in discussion and I think by the end of the year we will be clear.
Mr Winterkorn had recently stated that he hopes to take Volkswagen past Toyota and General Motors to become the worlds largest carmaker by 2018.
The German giants volume target to get past GM and Toyota in the world automobile pecking order is to sell 10 million cars in the next eight years. And thats where the growth markets of India and China will prove crucial for the company.
India is very important for us because in markets like China and India, volumes are improving whereas in Europe sales are stuck at the same level, Mr Winterkorn said.
VW sold around 1.3 million units in China between January to August this year, up 41%.
Globally, VWs 2010 sales through August were 4.7 million vehicles, up 13.4%. In the first half of 2010, it nearly tripled its net profit to $2.5 billion.
The India picture is crucial enough for Volkswagen to push for greater cooperation with new partner Suzukis crown jewel Maruti.
If Suzuki joins VW, their combined volumes already exceed Toyota, thanks mostly to Marutis top gear performance.
This is unlikely, but the two companies are looking for synergies in the Indian market.
Besides exploring the possibility of jointly developing a small car, the companies are also considering the option of the Japanese company sourcing small diesel engines from the German firm, Mr Winterkorn said.
Suzuki currently has only one diesel engine, which it sources from former alliance partner
Fiat. The company is desperate to increase its diesel portfolio given the rising popularity of diesel cars in India.
This is one of the areas we are talking about and it is known that we have very good diesel engines and one of them fits nearly all Suzuki cars, Mr Winterkorn said.
Apart from the alliance with Suzuki, Volkswagen is also investing heavily in India on its own. So far, it has invested Rs 3,500 crore in its factory in Chakan.
The company kicked off its Indian production with the launch of its small car Polo earlier this year. More recently, VW India launched its volume sedan Vento with a price tag of just under Rs 7 lakh.
Its product range in India includes the Passat, Touareg, Phaeton and Beetle apart from the Polo and Vento.
GM was the world number one carmaker from the 1930s till two years ago when its financial troubles pushed it off the top spot. Toyota quickly moved in to claim the title, but recall worries has hit the Japanese carmaker enough to make its stay at the top uncertain.
Volkswagen aims to replicate Chinese success story in India - The Economic Times
