New Delhi, Oct. 3: German carmaker Volkswagen, which holds 19.9 per cent stake in Suzuki Motor Corp, is likely to finalise a decision by the first half of 2011 on the development of an India-specific small car with the Japanese firm.
“Small car, specifically for India, is one of the areas that we are discussing with Suzuki... This decision for India will probably be taken by spring 2011,” Volkswagen AG chairman, Mr Martin Winterkorn, said. He, however, did not specify whether the car will be positioned below the Polo, Volkswagen’s latest hatchback in India, although officials of the Indian arm of the firm have confirmed that a small car is being planned below the Polo.
“India is very important for us. Volumes are growing in markets like India and China,” he added.
Volkswagen (VW) had last year picked up 19.9 per cent stake in Suzuki Motor Corp (SMC) for $2.5 billion, following which the partners have been exploring possibilities of joint production and vehicle design.
“We are discussing about engine development, hybrids for Japan and many other issues,” Mr Winterkorn said, adding that he usually meets SMC chairman, Mr Osamu Suzuki, every three months. He said VW and SMC are talking to share technologies to develop diesel engines, which in future may come to the Indian market also. Earlier top officials from both VW and SMC’s subsidiary Maruti Suzuki India had confirmed that there is a possibility to jointly develop products, including a contract manufacturing agreement, for the Indian market.