Volkswagen to outsource auto components from India

Volkswagen to outsource auto components from India

German automotive giant Volkswagen has announced that they would be outsourcing auto components from India in huge quantities.

The orders for these components could be worth Euro 1 billion in the next two years.

VW is also planning to heavily localize their cars in the Indian market so that they can lower their prices to become a competitive player.

Volkswagen AG global Head of Purchase (New Product Start-Ups) Bernd Martin said in a statement: “Our target is to give priority to local suppliers for our soon-to-be-launched Polo once the Pune plant starts operations by the end of 2009. We are planning to source at least 55 per cent of the components for the plant and its production at the start of our operations and take the figure to 70 per cent within two years of that.”