Volkswagen is aiming to grab a larger market share in the global market and the Indian auto market remains one of its main focuses. It acquired 20 percent stake in Suzuki Motor Corp last year and now intends to use synergies of both the companies to introduce new cars in the Indian market.
According to latest reports from NDTV, the companies are now considering to introduce small cars like Ritz and Wagon R under the VW and Skoda brands. Also, Volkswagen will utilise Maruti’s expertise on small car engine and will use its K-series engine and DDIS (diesel) engines to bring its own small cars in the Indian market.
On the face of it, the deal looks similar to Maruti’s pact with Nissan and Opel where Maruti produces A-Star and Ritz, which are then re-badged and sold respectively as Nissan Pixo and Opel Agila in the European markets. This enables Maruti Suzuki to retain its volume sales and overall market share in the global market. According to NDTV, the final outcome of the total strategy will appear in next two to three months.
