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Alka Kshirsagar

Hannover (Germany), Sept. 24 The Volkswagen group has plans to manufacture light commercial vehicles in India in co-operation with a local partner, and is currently in discussions with some companies for the purpose, according to Mr Harald Schomburg, Board Member, Sales and Marketing, Volkswagen Nutzfahrzeuge (VW Commercial Vehicles).

The plan is part of the company’s international growth strategy involving both India and China, and would be successful only if the vehicles were produced locally, Mr Schomburg said.

He was speaking on sidelines on the IAA commercial vehicle show at Hannover, where the concept Pickup, developed on a brand new platform, was amongst the new products unveiled by VWCV. Also positioned as a Search and Rescue vehicle, it is due to go into production in Argentina in late 2009.

VW has already begun importing limited volumes of its Crafter and Caravelle LCVs into India, and set up the Commercial Vehicles Division at Mumbai with Mr Christian Michatz-Richter as Managing Director on September 10.

The two models are currently being homologated, and once the process is complete as expected by early next year, they could be sourced as CBUs (completely built units) either from Hannover or Poland.

For India, which is poised to be the world’s largest LCV market in a decade, VW is looking to develop a new product for manufacture.

“At the moment we have no products that fit Indian needs,” Mr Schomburg said adding that the company expected to operate in the “micros” segment at least in the initial stages.

One of the roles the Indian partner will play is to help VW understand the market and find a suitable model for production.

He said that discussions were already underway with potential partners, but declined to give any names. Asked whether the commercial vehicles manufacturing plant would be located in the premises of the upcoming passenger car manufacturing facility at Chakan, Mr Schomburg said that there was space there, and the decision would be taken at the appropriate time.

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