Maruti Suzuki Cars With Volkswagen, Skoda Badges

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Volkswagen recently made an investment of over $2.5 Billion in Suzuki for a 20 percent stake, keeping in mind the 50 percent automobile market share that it holds along with Maruti. Another important reason is the fact that our market is one of the most rapidly emerging ones.

The step taken by this major is showing its effects as the cooperation between Volkswagen and Suzuki has already begun and an organization structure is established for future interactions between teams from Wolfsburg and Hamamatsu for jointly exploring new opportunities.

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The alliance will certainly focus on better profits from segments where VW already exists and resists manufacturing small cars for the time being. Another fact is VW’s cost structure is too high to effectively make its mark in the small car segment.

According to a company official VW understands Suzuki’s dominance in the hatchback segment and eagerly wants to rebadge two of Maruti’s models as its own cars. The two cars are the Maruti Suzuki A-Star and Wagon-R as the former has got sophisticated looks, driving dynamics and overall styling while the latter offers roominess and space.

Expectedly by 2012 the German major hopes to roll its rebadged A-star and Wagon-R into your nearest dealerships. The A-start will sport VW’s badge while Skoda’s car badge will be seen on Wagon-R’s grille.

Since Maruti Suzuki is very dominant in the small car segment, the German giant would definitely get benefited and once the latter makes it feet firm in rest of the segments, then probably it would become the most successful brand of all times. We appreciate the step taken by the German giant and hope to see it making big in our market.

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