German carmaker Volkswagen said it will boost the production of its latest product, compact car Polo in India to clear order backlog, which has exceeded 5,700 units within 2 months of introduction. These high orders were due to availability of cheap car loans.
Neeraj Garg, Volkswagen Group Sales India Board Member said, “We are gradually ramping up production, but not rapidly as, we do not want to compromise on the quality. About 50 per cent of the components are localised, so we have to be very careful while increasing the output”.
But he did not specify the exact quanta by which the production would be raised. The company has manufactured around 1,800 units in the earlier 2 months from its factory in Chakan with an average production of 900 cars a month.
With low manufacturing levels, VW is worried about fulfilling demand of the Polo in India.
Garg said, Polo has 3-4 months of waiting period prior to delivery and refuted market rumours that the company is holding up deliveries because of technical problems.
He said “It is perhaps one of the best car with technical specifications”.
VW’s Chakan plant, was establisehd at an investment of 580 million euro and has an yearly capacity of 1.1 lakh units.