Volkswagen aims to become a significant player in the Indian small car market with the launch of new models and through links with local manufacturers.
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VW Group management board member Jochem Heizmann said at the New Delhi motor show: “If you want to be a major player in India in the mass market, small cars are the way to go.”
He added that VW was looking at an auto parts sourcing deal with Maruti Suzuki. “We are starting to talk with Suzuki on synergies in a lot of areas and we see a lot of potential for increasing our localisation with this.”
The company will launch its Polo sedan model in India in the second half of 2010 following the introduction of the hatchback model in March.
VW and Toyota both said they plan to win 10% of the Indian market, challenging Suzuki in a country that has so far largely withstood the slump in global vehicle sales.
Toyota’s vice-chairman Kazuo Okamoto said: “India will play a pivotal role in Toyota’s global expansion plans. The time has come for us to strategically accelerate our growth here.”
Toyota expects to boost India sales about 20% this year from 55,000 vehicles last year and intends to more than triple its market share to over 10% by 2015.
