Volkswagen, a German auto player is looking forward to strengthen its presence in India and localization is part of strategy. The company eyes to achieve up 90 percent localization in next few years. To do these, company need to produce some key components in India such as engine and gearbox.
Talking about Strategy, Mr. Mahesh Kodumudi President and MD Volkswagen India said that “Our current level of localisation is 70 per cent and our aim is to take this up to 85-90 per cent in the next few years. To achieve levels of 90 per cent local content, we definitely have tolocalise engines and gearboxes.
“We are close to a decision and we will announce as soon as we make this decision," added Mr. Kodumudi. He also said that “Localization is one of the prime targets for us during our current consolidation phase as it helps us in reducing our costs and improving cost competitiveness.”
The company is currently having 5 brands under its umbrella, which is part of company’s foundation phase. But we will see next phase starting within two years to come. At the same point of time the company is also emphasizing on improvement of quality and productivity along with up gradation of sales and after sales network.
While talking about production facility utilization, he said “Chakan plant will produce about 2 Lac car per annum which would be almost double of current production. He said Chakan plant is currently running on two shift system and produce about 1.3 Lac units, while with three shift system it would produce about 1.5 Lac cars per annum.
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