German auto major Volkswagen’s plant in Chakan was inaugurated on Tuesday signifying one of the largest investment commitments of Rs 3,800 crore in the country.
Spread across 575 acres, the Chakan plant will start production of the Skoda Fabia compact car from May and the hatchback version of the Volkswagen Polo, especially developed for the Indian market, from 2010. The plant, ready in 17 months, has a maximum annual production capacity of 1,10,000 vehicles to cater to the Indian market. Speaking on the occasion, Jochem Heizmann, member of the board of Volkswagen AG said despite economic slowdown the Indian auto market has enormous potential. “India too is feeling the effects of the global financial crisis. The growth of the local automobile market has slowed down since the second half of 2008. But experts point out that there will be strong growth from 1.2 million vehicles at the moment to over two million in the next five years,” he said. He said apart from Skoda Fabia, Volkswagon Polo, especially designed for India, would start production from the Chakan plant. “By 2010, the plant will bring work for around 2,500 people. Many more jobs will be created at the suppliers region and a very high degree of localisation is a crucial success factor here. We are working hard to set up an efficient and innovative local supplier industry,” he said. Christian Matthias Sehlaga, German acting Ambassador, said India is a good place for doing business with a capable work force.
“Indo-German working group will be set up for the automotive sector. The investment made by Volkswagen will encourage German companies to invest in the country,” he said.
Jorg Muller, president and managing director Volkswagen India Private Limited, said the company has not set any target and the production of cars from the Pune facility would be based on the market demand. “The Beetle will be launched in the Indian market by the end of next year. We plan to attain a market share of 8 to 10 per cent in the next five years,” he said.
Maharashtra Governor S C Jamir, who was also present at the function, said in times of global slowdown the Indian government has taken proactive steps to protect the interest of automotive sector. “About 30 special economic zones are planned in the state and Volkswagen will serve as a catalyst for the development of others sectors as well,” he said.
Spread across 575 acres, the Chakan plant will start production of the Skoda Fabia compact car from May and the hatchback version of the Volkswagen Polo, especially developed for the Indian market, from 2010. The plant, ready in 17 months, has a maximum annual production capacity of 1,10,000 vehicles to cater to the Indian market. Speaking on the occasion, Jochem Heizmann, member of the board of Volkswagen AG said despite economic slowdown the Indian auto market has enormous potential. “India too is feeling the effects of the global financial crisis. The growth of the local automobile market has slowed down since the second half of 2008. But experts point out that there will be strong growth from 1.2 million vehicles at the moment to over two million in the next five years,” he said. He said apart from Skoda Fabia, Volkswagon Polo, especially designed for India, would start production from the Chakan plant. “By 2010, the plant will bring work for around 2,500 people. Many more jobs will be created at the suppliers region and a very high degree of localisation is a crucial success factor here. We are working hard to set up an efficient and innovative local supplier industry,” he said. Christian Matthias Sehlaga, German acting Ambassador, said India is a good place for doing business with a capable work force.
“Indo-German working group will be set up for the automotive sector. The investment made by Volkswagen will encourage German companies to invest in the country,” he said.
Jorg Muller, president and managing director Volkswagen India Private Limited, said the company has not set any target and the production of cars from the Pune facility would be based on the market demand. “The Beetle will be launched in the Indian market by the end of next year. We plan to attain a market share of 8 to 10 per cent in the next five years,” he said.
Maharashtra Governor S C Jamir, who was also present at the function, said in times of global slowdown the Indian government has taken proactive steps to protect the interest of automotive sector. “About 30 special economic zones are planned in the state and Volkswagen will serve as a catalyst for the development of others sectors as well,” he said.
1 comment:
The pace at which the company is progressing ahead, it wont be wrong to say that all the targets will be met ahead of time..Great Enthusiasm and dedication can be seen among the associates of the organization..I wish VW AG all the very best for its growth in the Indian Automobile Market..keep this momentum going so that India can see some world class cars like POLO & Fabia on Indian roads soon..
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