Volkswagen Vento being exported to Mexico for expanding operations

Monday 11 November 2013, 12:11 PM by

German automobile giant Volkswagen is all geared up to increase its export market from India, sources have claimed. It is a known fact that cars from this brand are produced at the Chakan facility that is located in Pune, Maharashtra. The export business of Volkswagen India commenced in 2011 and since then, the company has aimed to trail its production growth in foreign markets. Earlier in 2012, the company managed to make a strong presence in the Left-Hand Drive (LHD) market with selling off cars in West Asian countries. According to reports, as of now, only Vento and Polo models from Volkswagen are being exported from India.

Volkswagen Vento being exported to Mexico for expanding operations |
Volkswagen Vento being exported to Mexico for expanding operations

For Volkswagen India, Mexico is the biggest potential export market to ship-off cars from the Pune plant, where the actual production takes place. Thereby, shipping of Vento, a mid-sized sedan, is being carried off to Mexico in order to make a mark in African and Asian markets. Sources close to this development have claimed that North America is the next target for Volkswagen India to ramp-up its export business. Currently, the Volkswagen plant in Pune produces Vento, Polo, Skoda Fabia and Skoda Rapid. However, this growth strategy involves exports of Right-Hand Drive (RHD) Polo and LHD Vento.

Mahesh Kodumudi, President and Managing Director at Volkswagen India, provided a few details in this context and its target country. "The total units exported so far from Pune are over 27,000 units as of October 2013...Almost every second car from the export volumes is going to Mexico currently...The biggest export market for Volkswagen India is currently Mexico," he stated. When Kodumudi was asked about the annual production of cars for exports, he said: "Currently, we are exporting to 32 countries across three continents...We have been adding more markets and hence the number is going up and there is no annual number that can be given. As of now, up to 20% of the production at Volkswagen Pune plant is for export markets."

Volkswagen Vento being exported to Mexico for expanding operations

Throwing light on the Volkswagen plant's output, Kodumudi further pointed out that the Pune plant managed to produce around 96000 cars in 2012. But as far as the manufacturing for 2013 is taken into account, he said that the number highly depends on the kind of demand generated in the market. And, if the outcome seems to be positive and in our favour, then the production of cars can be increased. Continuing, Mahesh Kodumudi further added, "In case there is increase in demand, we have the capacity to ramp-up the production for increased exports.” However, talking about the addition of Volkswagen models in the future to the export lot, he stated, "We do not have any plans for other products as of now." Moreover, when asked about the plans of Volkswagen company to venture into new markets, he was quoted as saying, "For now, we do not have any more markets decided after Mexico."

In recent times, India has become an important export market for various car makers due to cost benefits and increased profitability. Recently, when the value of Rupee was falling constantly against the dollar, several firms survived adverse market challenges by upping the ante in exports.