Volkswagen India has set up a unit to manufacture and package Vento and Polo assembly kits for export from its Pune plant.
The automaker told The Hindu Business Line it would begin with exports to Malaysia.
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The Indian parts will constitute about 70% of the car which will be assembled at the DRB Hicom plant.
Volkswagen India has been exporting fully built cars from Pune since last year to South Africa, Sri Lanka, Nepal, Bangladesh, Malaysia and a left hand drive version of the Vento to west Asia.
About 215 new jobs will be created in the parts and components unit at Volkswagen and at suppliers.
“Apart from the Malaysian market, if there is a demand from any other region for parts and components, we are on the pole position to support,” said Andreas Lauenroth, executive director technical, Volkswagen India.
Currently, Volkswagen cars assembled in India have 70% local content and the company plans to localise further by building engines and gearboxes if volumes support this.
“It will be the next logical step if the numbers grow,” said spokesman Alexander Skibbe.
