Mr Martin Winterkorn Volkswagen global CEO wants to increase its sales in to a million cars by 2018 to become the world’s number one car company, ahead of Toyota and general Motors. The company can do this by replicating its Chinese success story in India.
Mr Winterkorn said that “Our market share in is roundabout 20% and it fits our target in India as well.” Mr Winterkorn added that Volkswagen expects the Indian market to become five million cars strong by 2018 and it aims to garner a one-fifth share in the market by then through its different brands.
In India to visit Volkswagen’s 110,000 units a year plant at Chakan in the outskirts of Pune, he said volumes in India was the most important thing for the company. He told Reuters that “We are strong in India and we feel we have the best cars for India.”
The German carmaker is looking at jointly developing a small car for India with Suzuki Motor, in which it took a 19.9% stake late last year.
Mr Winterkorn said that “This is one of the ideas that we’re discussing. We are in discussion and I think by the end of the year we will be clear.”
Mr Winterkorn had recently stated that he hopes to take Volkswagen past Toyota and General Motors to become the world’s largest carmaker by 2018.
The German giant’s volume target to get past GM and Toyota in the world automobile pecking order is to sell 10 million cars in the next eight years. And that’s where the growth markets of India and China will prove crucial for the company.
Mr Winterkorn further said that “India is very important for us because in markets like China and India, volumes are improving whereas in Europe sales are stuck at the same level.”
Globally, Volkswagen’s 2010 sales through August were 4.7 million vehicles, up 13.4%. In the first half of 2010, it nearly tripled its net profit to USD 2.5 billion. The India picture is crucial enough for Volkswagen to push for greater cooperation with new partner Suzuki’s crown jewel Maruti.
