Volkswagen is one of the most known automobile manufacturer around the world and a prestigious brand that registered a car sales rise with 4% in July 2014, mostly influenced by a high demand of cars in Western Europe and Asia Pacific.
Although the manufacturer is considered a market leader in China where the business has seen a significant boost, things are slightly different for the Indian zone, because the competition is fierce with brands like Hyundai or Toyota.
However, Volkswagen struggles to improve the localization process in India by producing engines and transmissions locally. The company’s plans are to raise the localization level to 90 percent from about 60 to 70 percent. According to officials from Volkswagen, the localization is now a key part of the growth strategy and an essential part for a sustainable business model, even if it wasn’t back in 2010 when entered the market.
Given the country’s bad economic slowdown for the last years with a direct effect on the car sales, “Indianization” is an important keyword for the company to focus on and rise the localization levels.
Source: Automotive News Europeby