Volkswagen to Minimize its Production Costs
Posted by Carazoo on October 14, 2008
Small cars are gaining huge popularity in Indian market. The car manufacturers have understood this and are now rolling out more small cars in the country. Even Volkswagen is all set to launch its small car in India soon.
The small car would come packed with local flavour as the German car manufacturer plans a high degree of indigenization for its volume car. So this would be the first ever car that would enter the compact car segment.
The small car will enter the Indian market around 2010 and the same will be manufactured at Volkswagen upcoming manufacturing plant at Chakan in Maharashtra. The company feels that high level of local content will not only lessen the production cost of the car, but will also help preserving costs with the spare parts.
The company is planning to invest around Rs 3600 crore in setting up the manufacturing facility at Chakan. The production in this unit will start from 2009 end. Also the manufacturing plant will be used partially for the production of Skoda’s hatchback Fabia.
Many car manufacturers are realizing what the buyers are looking for and are going according to their choice.
