Frankfurt: Europe’s biggest car maker Volkswagen AG, or VW, is aiming to secure 10% of India’s burgeoning market within five years, a director said on Monday in the German business daily Handelsblatt.
“We want to move quickly in terms of volume,” VW’s India president, Joerg Mueller, said. The group currently has less than 1% of the Indian market.
VW planned to move up the launch of its first wholly owned Indian factory by six months to early 2009. It is to invest €580 million (Rs3,828 crore) at a site in Pune, to increase output of the Fabia car to 50,000 vehicles per year.
VW also wants to launch its planned low-cost car Up in India, which has become a priority market for chief Martin Winterkorn.
The Indian auto market is currently dominated by Maruti Suzuki India Ltd and Hyundai Motor India Ltd, the New Delhi-based units of Japan’s Suzuki Motor Corp. and South Korea’s Hyundai Motor Co., respectively.