Volkswagen Group’s global sourcing from its Indian vendor base has been rising consistently over the years and will continue to expand, a top purchasing executive said.
“We will source around EUR90m worth of components from our Indian vendors for VW’s operations worldwide [this year],” said Mahesh Kodumudi, executive director, components purchasing, Volkswagen Group India, on the sidelines of the Automotive Plastics event in Mumbai recently.
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“The purchases likely will rise to EUR300m in four to five years.”
VW’s Chaken plant builds VW and group brand Skoda’s models. The VW Polo hatchback and Vento sedan share their platform with Skoda’s Fabia hatch and Rapid saloon.
VW Group has spent a lot of money on Indian vendor development.
“We have invested EUR250m in localisation like supplying tooling and supplier development,” Kodumudi added.
Overall VW has spent EUR600m setting up production at Chaken and associated ‘localisation’.
Currently, VW India has 115 vendors and expects that to grow to 150-160 once it starts manufacturing 250,000 to 300,000 units a year at Chaken.
The group has targeted a 10 % share of the Indian car market within five years.
