Volkswagen Ready to source double components from India – Spend US$ 942 Million
Volkswagen Group is looking to double ‘component sourcing from India’ with an expense of $924m for the current year said Audi Chief Michael Perschke. While Audi looks at multiple car launches and dealership expansion in 2012, VW Group luxury car maker acknowledges that cost effective manufacturing would find strength in component sourcing from India, and investment in new plants.
The Volkswagen Group sources various components from India that include crankshafts for vehicles across its Audi, Volkswagen and Skoda brands.
Audi sold just over 5,500 cars in India in 2011, and targets sales of 8,000 cars in the current calendar year, in line with luxury car sales growth of around 50 percent in the country.
In the long run, our expectations are to increase our global sourcing out of India,” Perschke said. “In terms of cost competitiveness […] India has a strategic advantage.”
-Michael Perschke
Audi sold just over 5,500 cars in India in 2011, and targets sales of 8,000 cars in the current calendar year, in line with luxury car sales growth of around 50 percent in the country.
Spending on luxury cars in India grew 36 percent in 2009-10 to $1bn, according to a recently released report by AT Kearney, outstripping growth in jewellery, electronics and watches. But, we still lack behind countries like China where Mercedes and BMW sold a combined 320,000 vehicles in the first nine months of 2011.
