Maruti Suzuki is seen to be the most successful Indian brand, which to an extent has been able to capture the small car segment market and now heads towards the sedan segment. Brands with amazing potential are bound to be offered with better global opportunities to enlarge the spectrum of their services as well as technologies.
Volkswagen is another global major whose products is what the world is already familiar with and till date has delivered the best it can and is definitely working on making it better. A while back this major bought 19.9 % stakes in Suzuki in order to explore Suzuki’s technology and striking the right balance between theirs.
The company is doing well in the Indian automobile market with Jetta, Passat and Polo with appreciable sales and is trying hard to conquer a greater share of the market. Focusing on the same,recently the brand had also made an investment of Rs.3,500 crore in its Chakan plant.
But Maruti Suzuki already holds 55 % of the market share and its presence cannot be avoided.Volkswagen now besides giving Maruti a cut-throat competition,is getting inclined towards it and is keen to work with it. The partnership would concentrate on developing global products from the company’s cost-effective manufacturing techniques and supplying them across the planet.
“Of course, there is a possibility of developing products together, (but) I cannot confirm it. Suzuki is very strong in the Asian market, including India and Japan. They have knowledge in the small car segment, which is pretty unique. They make small cars and make money. Lot of manufacturers make small cars, but they don’t make money. Suzuki has lot of interest on the technologies that we have. There are lot of discussions going on about synergies and one synergy could be at the suppliers’ level as well,” said Christian Klingler, Management Board Member, Volkswagen.
Suzuki might get access to VW”’s latest technologies like the VW’s modern TDI diesel engines, TSI petrol engines and the DSG transmissions and could employ them in its future cars like the 2011 Suzuki Swift and later others.It would not be surprising if we see Swift featuring VW’s modern TDI diesel engines, TSI petrol engines and the DSG transmissions.
Volkswagen is working on its new global car VW UP and with the partnership moving in at this time,the car’s production could get a cost effective turn over.
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