Volkswagen has plans to expand India; Targets Chennai

C Shivakumar

Chennai:

German carmaker Volkswagen is planning to expand its operation in India and Chennai is an option, according to Consul General of German Consulate in Chennai Stefan Weckback.

Weckback told Express that Volkswagen, which has a factory in Chakan, wants to expand operations in India and Chennai is an option for the car-maker. However, he refused to divulge further details.

Volkswagen’s factory at Chakan produces up to 130,000 cars a year. It makes the Polo hatchback and the Vento, Jetta and Passat sedans at Chakan and imports the Beetle and Phaeton cars and the Touareg sport-utility vehicle.

Interestingly, his statement comes in the wake of Diamler investing Rs 4,400 crore in Orgadam to manufacture trucks for the domestic as well as overseas market.

He also said another German carmaker BMW is also planning to double its capacity in Sriperumbudur  by next year.

Weckback said more and more German foreign direct investment will come to Chennai and talks are also on with Indian suppliers in Tamil nadu to outsource componenets for German car-makers.

Interestingly, German car-makers have sold nearly 120,000 passenger cars and has captured five per cent of Indian car market. “The German automotive industry is strengthening its presence on India’s growth market. Exports to India of German passenger cars alone rose in 2011 by just over 70 per cent to 25,000 units,” said Weckbeck while addressing Federation of Indian Chamber of Commerce and Industry (FICCI) conference ‘Tamil Nadu: World’s leading and Most preferred Manufacturing and Automotive Destination’ here on Wednesday.

Earlier, British deputy high commissioner Mark Nithavrianakis, acting consul general of US Nicholas Manring highlighted the importance of Chennai being an investment destination in the wake of new government coming to power. They also urged the state government to improve the power situation in the country besides a talent pool of skilled workers.