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Volkswagen:- 40-45 lakhs units per year by 2020

The German automaker giant Volkswagen plans to make India one of their global manufacturing and export hubs. To kick off, Volkswagen plans to pump in INR 1500 crore to produce material locally for higher cost-effectiveness.Mahesh Kodumudi, chief representative Volkswagen India said that making India a low-cost manufacturing hub catering to emerging and developed export markets. In 2014, we exported 65,000 cars which is 60% of our production from the Chakan plant. We are looking to export 70,000 cars this year.” Volkswagen is aiming to bump up production capacity at its Chakan and Aurangabad plants in the coming two years.

Volkswagen thinks that the growth of the Indian automobile industry has been restrained by the constant altering of policies and large currency fluctuations. The carmaker is also in discussion with the government over the latter’s decision to reduce export incentives from 4% to the current 2%. Kodumudi added, “Now we need the government to create stable policy framework and labor reforms, which need to be simplified. This will help gain confidence of foreign investors. We also need to talk about FTA with the EU to help the growth of the industry.” Speaking on the government’s current Foreign Trade Policy Kodumudi said, “This move will hit the company’s export plans. We are hopeful of the government restoring export incentives.”

 

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