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Friday, December 09, 2011

By Pranjal Gera

Volkswagen AG to broaden the auto component sourcing from India

German based auto giant, Volkswagen AG is now planning to enlarge the sourcing of auto parts from India to over €300 million (Rs 2,074 crore) within next 3 to 5 years for its global operations.The company also uttered to localize 70 percent of its production in India itself within the next two years at its Pune, Maharashtra facility.The giant aims to double the number of auto component suppliers, so to expand the range of spare parts for its global markets. Such a decision will not only help in cost-effective sourcing of spare parts, but also to increase the localization of its much awaited small car UP! to over 90 per cent.

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Higher the localisation, lower the overall price and greater the chance to take on market chiefs Maruti Suzuki and Hyundai India, indeed such a move will help the company to become more competitive.Volkswagen India’s Executive director- component purchasing, Mahesh Kodumudi said that, company sees India a very competitive base of sourcing; this might offer the cost advantage of at least 10 to 15 percent over Western Europe. The associated India vendor too have matured their capabilities in the last few years, so company expects them to now play bigger role.

Volkswagen Up Pictures

See More Volkswagen Up Photos Get Volkswagen Up Price

The company has said to be investing about Rs 1,728 crore over the coming few years on vender development and tooling as the latest models like Volkswagen UP! is now almost ready to launch.At present, the company source engine- transmission parts, power train components, sheet metal, metallic parts and various other small plastic constituents. The sourcing of plastic parts will go up to 50 million euros annually.

Comments (1)

relianzmetal@gmail.com

Jitendra Kella

Thursday, December 06, 2012

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