German car manufacturer Volkswagen (VW) may expand its worldwide partnership with Suzuki in India by using the production and design facilities of Maruti-Suzuki in India. Senior officials of VW went to the Maruti-Suzuki factory and met top management of the company where discussions revolved around sharing product designing or renaming cars.
Both carmakers are expected to work together at Maruti-Suzuki’s new unit at Manesar. VW plans to use this manufacturing unit to boost its existence and market share in India. VW and Suzuki are together constructing a small car, which will be manufactured at the new factory, an essential small car market for both the firms, said 2 sources familiar with the development.
Volkswagen India chief Mueller has said that the company is planning to grab an 8% market share over the next 3-4 years when the Indian car market is anticipated to touch 3 million. It converts to about 2.5 lakh cars a year while VW’s total capacity is just 1.1 lakh. It will require another 2-3 years to capture the full installed capacity and VW is planning to reach the figures from Maruti, said a person familiar with the development.
Maruti-Suzuki chairman RC Bhargava said: “The decision for any tie-up with Volkswagen would be taken by Suzuki Motor Corp and Maruti has no role in that. Any relationship would be guided by the parent company and the new capacities could well be taken up by the local demand which we are struggling to meet.”