Maruti-Volkswagen may initiate joint-development

Maruti Suzuki India and German car maker Volkswagen are in the final stage of their talks of a possible synergy on a number of areas like product development, design, implementation and manufacturing. However, neither of the companies have come out with an announcement on this regard till now. The companies were trying to thrash out areas where partnerships and joint strategies could be worked out for the Indian market.



The seriousness of the talks is evident considering that a number of VW officials have already visited the factories of Maruti in Haryana, said Joerg Mueller, chief representative of the VW group in India, in an interview given to a leading business news paper.Few months back, Volkswagen bought a 20 percent share in the Japan based Suzuki Motors, and since than it is widely speculated that Volkswagen is looking on synergy with Maruti Suzuki in India to capitalize on the growth potential exists in this rapidly growing market.

Volkswagen has recently launched its compact hatchback Polo in India which is facing a tough competition from Maruti's best-selling hatchback Swift in the country. Now as Maruti acquires more than 50 percent market share in the Indian car market, a possible synergy on areas like product development, design will certainly help Volkswagen in grabbing a meaningful chunk of car-market in India.

Maruti's popular cars in India includes small cars like Alto, Wagon R, A-star and Zen Estilo, premium hatchback like Maruti Swift and Ritz, and entry level sedans like Maruti SX4 and Maruti Swift Dzire.

Source:- Maruti-Volkswagen may initiate joint-development - New Cars