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Tuesday, 26 June 2007

Now that many foreign automobile companies are launching their cars in India, it is the local unit of Volkswagen AG, which is planning to release a compact car, especially designed to perform well on Indian roads. The Indian unit of Volkswagen AG is all set to make a smaller version of the Polo car model, which is likely to hit Indian roads by 2009. Blasting sales of this peppy car is predicted. The committee members of Volkswagen surveyed the country roads to learn more about Indian road conditions, before introducing its first car.

Compared to big cars, small cars have a much higher demand in India. Towering fuel prices and bad road conditions insist for powerful and fuel-efficient models. Other than Volkswagen, other companies such as Nissan Motors and Honda Motors are planning to design a compact car to survive Indian road and temperature conditions.

The modified car will be made accessible in both petrol and diesel engine variants. Volkswagen has requested the presence of over 250 Indian vendors to its first supplier discussion as it is planning to have at least 50% of the locals satisfied when it starts making the models. Volkswagen, which supplies a large percentage of automotive parts worldwide, has called audits of Indian vendors to shortlist them for some of the supplies. In the units distributed around the world, Volkswagen has planned to make a million units a year. Initially, in India the planned target is 110,000 units a year. Companies are planning to source a majority of the parts locally to cut down the price factor.

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