German major Volkswagen (VW) is taking a close look at the Indian market for its commercial vehicle product range. Currently VW is selling the Multivan and Caravan, mostly in the passenger segment. All vehicles are currently imported as fully built units from Germany and sold through the dealership network established in India for passenger car business.
Going forward, VW is looking at the possibility of setting up a manufacturing facility for its commercial vehicle product range. “We are examining the possibility of entering the market on our own or through a JV with an Indian partner”, said Dr. Jens Effenberger, Director - Sales International, Volkswagen AG.
Volkswagen AG is currently setting up a new production plant in Pune for its passenger car business. With investment totalling some 410 million euros, a full production plant with a press shop, body shop, paint shop and assembly lines is being set up on a 230-hectare site in the Chakan industrial park near Pune.
The company is in the process of establishing a national sales and service for its passenger car business. Currently there are eight dealers in India.
The vans which are part of the VW commercial vehicle business unit are being sold through the existing dealer network. VW has sold close to 50 units in India till date. VW is currently offering the Multivan, Caravan and Crafter in the Indian market, which are more in the high end mostly targeted at the tourism industry. Currently the vans sold in India are imported as fully built units and in the next step it could be imported as a CKK kits and assembled in India or it will consider setting up of a manufacturing facility in India. The company realises that, if it has to gain volumes it has to manufacture its products locally to be competitive and the best way would be to do it with a local partner who is already established.
Mr. Effenberg also said the company is also exploring the market for launching the CNG version of Caddy in India. Caddy is one of the most successful global models of minivan from the VW stable.
Going forward, VW is looking at the possibility of setting up a manufacturing facility for its commercial vehicle product range. “We are examining the possibility of entering the market on our own or through a JV with an Indian partner”, said Dr. Jens Effenberger, Director - Sales International, Volkswagen AG.
Volkswagen AG is currently setting up a new production plant in Pune for its passenger car business. With investment totalling some 410 million euros, a full production plant with a press shop, body shop, paint shop and assembly lines is being set up on a 230-hectare site in the Chakan industrial park near Pune.
The company is in the process of establishing a national sales and service for its passenger car business. Currently there are eight dealers in India.
The vans which are part of the VW commercial vehicle business unit are being sold through the existing dealer network. VW has sold close to 50 units in India till date. VW is currently offering the Multivan, Caravan and Crafter in the Indian market, which are more in the high end mostly targeted at the tourism industry. Currently the vans sold in India are imported as fully built units and in the next step it could be imported as a CKK kits and assembled in India or it will consider setting up of a manufacturing facility in India. The company realises that, if it has to gain volumes it has to manufacture its products locally to be competitive and the best way would be to do it with a local partner who is already established.
Mr. Effenberg also said the company is also exploring the market for launching the CNG version of Caddy in India. Caddy is one of the most successful global models of minivan from the VW stable.
Globally, VW has also established its presence in the heavy commercial vehicle business. The company has a very strong Heavy commercial vehicle business in South America with the Constellation series of Heavy duty trucks and buses. After the success of the products in the Latin American market, VW is now launching these trucks in South Africa and latter in the Far eastern markets, which includes markets in Asia, including India.
