Volkswagen India to increase localization to reduce costs

Volkswagen India, the Indian arm of the German automobile manufacturer Volkswagen is planning to increase the percentage of localization in its car manufacturing process with the aim of reducing costs and pricing its products more competitively.

While the automaker currently holds 2.1 percent of the total auto market in India, it expects to boosts its sales with this reduction in production costs. Moreover, car sales have been witnessing a slowdown in the Indian auto industry, thus putting further pressure on automakers to ramp up their production and cut costs to price their products more aggressively in the price sensitive auto market that India is.

According to Mr. Michael Mayer Director Passenger Cars at Volkswagen India, the automaker needs to produce cars that adapt to the tastes and preferences of the Indian buyers.

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