Volkswagen Announces Sourcing Agreement in India

Saturday 31 May 2008, 00:00 AM by Satish

Volkswagen has finally entered a major sourcing agreement with Delhi based Minda industries. It has signed a $15 million agreement with the company to supply head lights and rear combination lamps.

Some of these parts shall be used for the models in Russia while most of them would be used for models that are slated to be launched in India in coming few years.

According to Joerg Mueller, “We plan to source largely from local vendors to keep our car prices low and competitive. We will launch Polo in two variants, a small car and a sedan sometime next year. We are working on a supplier’s chain.”

MIL managing director NK Minda added: “We have signed a letter of intent with Volkswagen to supply automotive lighting, which will be made at our manufacturing plant in Pune. We will be working closely with Volkswagen’s head office at Wolfsburg in Germany to develop the style and prototype of these products to meet quality and cost parameters. It’s an all new technology that we are developing for them which will be used for the first time in India.”

Minda industries also stated that it is in talks with other original equipment manufacturer to supply head lights and expects that its lighting division shall reach Rs. 2.25 billion benchmark.

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