Latest Car News in India

Tuesday, September 13, 2011

By Pranjal Gera

Volkswagen and Maruti Suzuki end their Alliance

Volkswagen has cancelled its plans of launching its new small car Volkswagen UP ! on Maruti Suzuki's small car platform. This decision was made after Maruti Suzuki decided to end its alliance with the German giant.

As per sources, Volkwagon will now launch UP! as a specially developed variant. Volkwagon plans to launch this compact car by next year, keeping in mind the huge small car market of India. This will be Volkswagen smallest car till date, and it is slated to take on Maruti Suzuki's Wagon R and Maruti A-Star.

Volkswagen UP Pictures

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Suzuki Chairman Osamu Suzuki ended the the company's alliance with Volkswagen, after the German brand accused it with violation of partnership pact. The reason for this was Suzuki's decision of agreeing with Fiat's diesel engine deal.

A Maruti Suzuki Executive claimed that Volkswagen's teams from both germany and India came to Maruti Suzuki's office in Gurgaon, but nothing could be agreed upon.

 

Volkswagen UP Pictures

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John Chacko, Volkwagon India's President said that the company is working on bringing small cars to India. According to Sources, UP! will be powered by the same engine as Volkswagen Polo, but will probably have some different tuning. It will be showcased in India at the Auto-Expo, which will be held in Delhi, next year in January.

Volkswagen is still new to the Indian market, but it has been a hit by selling 53,300 cars in the previous year. It plans to expand its reach and double its sales by this year's end.

Volkswagen UP Pictures

See More Volkswagen Up Pictures Get Volkswagen Up Price

 

Maruti Suzuki, India's leading car manufacturer, has witnessed drop in sales since the month of June. Also, the strike by its workers at its Manesar plant has affected its sales.

However, the festive season is expected to bring back the growth rate in the country.

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