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Rediff.com  » Business » Volkswagen to source 1 bn euro auto parts from India

Volkswagen to source 1 bn euro auto parts from India

November 03, 2008 12:53 IST
German auto major Volkswagen AG is embarking on an auto component sourcing drive from India, which will see the company ordering materials worth one billion euro for its global operations, within the next two years.

The company is also aiming at about 70 per cent localisation of its cars produced in India within two years of starting operations at its manufacturing unit at Pune in Maharashtra.

"Our target is to give priority to local suppliers for our soon-to-be-launched Polo once the Pune plant starts operations by the end of 2009, Volkswagen AG global head of purchase (New Product Start-Ups) Bernd Martin told PTI.

"We are planning to source at least 55 per cent of the components for the plant and its production at the start of our operations and take the figure to 70 per cent within two years of that," he added.

The company currently makes annual purchases of auto components worth 70 billion euro from suppliers across the globe and now plans to secure at least one billion euro worth component supplies from Indian supplier firms.

He said the company had a chance to see component parts from various Indian suppliers at the just concluded fifth International Suppliers Fair organised here at Wolfsburg.

"We are looking at exporting components worth at least one billion euro from the Indian supplier firm within next two-three years," Martin said.

Wolfsburg, located in the German state of Lower Saxony, is the global headquarters of the Volkswagen Group. The company is also planning to use India as an export market for components to Europe.

"We have already come up with a regional sourcing office in India. Our priority is to use local competency, technology and materials," Martin added.

Pranjal Bhuyan in Wolfsburg (Germany)
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