VW aims to make Indian operations low-cost export base

Volkswagen is currently working on making its Indian operations a low-cost export hub where it will cater to both emerging markets as well as the more developed ones. It already exports the Vento and Polo to various RHD and LHD markets from its Pune plant.
Working under the ‘Make in India’ initiative of Prime Minister Modi, the German automaker will be investing Rs 1500 crore for increasing localisation and cost effectiveness. The company exported 65,000 cars in 2014 and aims to increase this number to 70,000 for 2015. It further aims to produce 200,000 units by 2018 and maybe even start producing other models here in India. It sees great potential from our country and one of the most major commitments to the realisation of this great potential is its push for the creation and running of the engine plant at its Pune facility.
In terms of products, VW is expected to bring the new Passat as well as the new versions of the Beetle for the Indian market. On the other end of the spectrum, it will also launch a Polo-based compact sedan to enter the volumes segment in the Indian market.
However, while its plans look pretty positive, the company has said that frequent policy changes and currency fluctuations has hampered the  growth of the industry for the last two years. It hopes the government will create a stable policy frame work and labour reforms that will in the larger scheme of things create confidence among foreign investors.

Source:ET