Volkswagen expects to be buying components worth EUR1bn a year in India for its global operations within two years.
The company is also for local content of about 70%, also within two years of the start of production, in cars produced at its new manufacturing unit at Pune in Maharashtra.
“Our target is to give priority to local suppliers for our soon-to-be-launched Polo once the Pune plant starts operations by the end of 2009, Bernd Martin, who heads purchasing for new products, told the Press Trust of India.
“We are planning to source at least 55% of the components for the plant and its production at the start of our operations and take the figure to 70% within two years of that,” he said.
VW buys EUR70bn a year from suppliers worldwide.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataThe company is also planning to use India as an export market for components to Europe.
“We have already come up with a regional sourcing office in India. Our priority is to use local competency, technology and materials,” Martin added.