Searching for Growth ; Stagnant Car Sales and a Bleak Economic Climate Have Dampened but Not Derailed Foreign Automakers' Plans of Investing in New Plants and Products in India.
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Summary
The Volkswagen Plant in Pune is gearing up to roll out its brand new line of white Skoda Fabias in May this year. Auto engineers run around like busy bees, polishing off the few specks of dust on the bodies, running final performance tests and fixing cables. With its growing demand, India is an important market for us, says Jorg Muller, President & Managing Director, Volkswagen India. We will produce three car models from this plant primarily for the Indian market, he says. Currently, only a handful of cars are being produced, but when the plant finally powers up to full capacity, Volkswagen will begin churning out 1,10,000 cars every year, including the popular Polo hatchback scheduled to be launched next year.
Volkswagen is one of many foreign automakers with the exception of well-entrenched, market leaders Maruti and Hyundai who are busy expanding their plants and launching new product lines in India, despite the global economic slowdown and flat auto sales. The rationale of these relatively recent entrants is simple: This is a hot car market which still has enormous potential in the form of the upwardly mobile Indian middle class consumer who has yet to be as severely affected by the slowdown as his western counterpart.See the full content of this document
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Searching for Growth ; Stagnant Car Sales and a Bleak Economic Climate Have Dampened but Not Derailed Foreign Automakers' Plans of Investing in New Plants and Products in India.
As the economy grows, there's growth in per capita income and car ownership, says Rakesh Batra, Partner and National Leader, Automotive Practice, Ernst & Young. Foreign car manufacturers have recently announced plans to add 1.02 million units to existing capacity. Combined with current and future output by Indian car makers such as Tata Motors, India's car manufact...
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