The newly made Volkswagen-Suzuki alliance has already charted out its plans to develop a small car for the Indian market which would cost approximately around Rs2-2.5 lakh, which also could replace the Alto when the Maruti-Suzuki decides to retire its top-selling model.
Top officials in Maruti Suzuki have also confirmed this news that they were looking out for a car that would be replacing Alto for the price quoted above as that is the entry level for Indian customers today and the segment is very strategic for the company.
Volkswagen and Japan’s Suzuki Motor Corporation had, on Wednesday, announced a deal which will see the German carmaker picking up a 19.9% stake in Suzuki for $2.5 billion. The companies plan to develop small cars and electric vehicles under both brands. The new car that will be priced at $4000-5000 in the European market will be the cheapest car from the Volkswagen stable below the Up, which carries a price tag of around $8800.
Volkswagen also is enthusiastic in a car priced below the price segment of Up!, their cheapest car in the offering at the moment. VW is also looking forward for the fructification of the project with Suzuki.
Meanwhile VW will be launching its Polo hatchback in India by next year, which will be competing against popular hatchbacks in India like that of Maruti Suzuki Swift and Hyundai i20.
Although the contours of the partnership are still being worked out, both partners are interested in developing common platforms. Sharing platforms will enable VW to use Suzuki for contract manufacturing both in Japan and India. While VW is eying the options of producing its cars in the Maruti-Suzuki’s plants it is desperately seeking the small car expertise from small car whiz Maruti Suzuki to gain a foot hold in small car markets such as India and Europe and Suzuki is looking forward to learn the know-how of the diesel power plants technology from the German giant.
VW however was very clear to mention that they were not in the league to eye the Nano segment. But VW-Suzuki alliance has sent some shivers down the spine of many big players in India. Tata Motors for instance would have to re-draft their strategy as this alliance would mean some serious competition coming for diesel cars like that of Tata Indica Vista hatchbacks and Indigo sedans.
But there is a catch here in the whole process. However the global partnership will not result in the two companies sharing distribution and dealership networks in India. According to VW officials, the main focus of the synergy, particularly in India, will be on back-end areas like production and purchasing of parts.
Top officials in Maruti Suzuki have also confirmed this news that they were looking out for a car that would be replacing Alto for the price quoted above as that is the entry level for Indian customers today and the segment is very strategic for the company.
Volkswagen and Japan’s Suzuki Motor Corporation had, on Wednesday, announced a deal which will see the German carmaker picking up a 19.9% stake in Suzuki for $2.5 billion. The companies plan to develop small cars and electric vehicles under both brands. The new car that will be priced at $4000-5000 in the European market will be the cheapest car from the Volkswagen stable below the Up, which carries a price tag of around $8800.
Volkswagen also is enthusiastic in a car priced below the price segment of Up!, their cheapest car in the offering at the moment. VW is also looking forward for the fructification of the project with Suzuki.
Meanwhile VW will be launching its Polo hatchback in India by next year, which will be competing against popular hatchbacks in India like that of Maruti Suzuki Swift and Hyundai i20.
Although the contours of the partnership are still being worked out, both partners are interested in developing common platforms. Sharing platforms will enable VW to use Suzuki for contract manufacturing both in Japan and India. While VW is eying the options of producing its cars in the Maruti-Suzuki’s plants it is desperately seeking the small car expertise from small car whiz Maruti Suzuki to gain a foot hold in small car markets such as India and Europe and Suzuki is looking forward to learn the know-how of the diesel power plants technology from the German giant.
VW however was very clear to mention that they were not in the league to eye the Nano segment. But VW-Suzuki alliance has sent some shivers down the spine of many big players in India. Tata Motors for instance would have to re-draft their strategy as this alliance would mean some serious competition coming for diesel cars like that of Tata Indica Vista hatchbacks and Indigo sedans.
But there is a catch here in the whole process. However the global partnership will not result in the two companies sharing distribution and dealership networks in India. According to VW officials, the main focus of the synergy, particularly in India, will be on back-end areas like production and purchasing of parts.
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