Chakan Plant

The Volkswagen Group with its headquarters in Wolfsburg, Germany, is one of the world’s leading automobile manufacturers and the largest carmaker in Europe. The Group is made up of actually nine brands: Audi, Bentley, Bugatti, Lamborghini, Scania, SEAT, Skoda, Volkswagen Passenger Cars and Volkswagen Commercial Vehicles. Each brand has its own character and operates as an independent entity on the market. The product range extends from low-consumption small cars to luxury class vehicles and trucks. The Group operates 61 production plants around the world. In total more than 370,000 employees produce more than 26,600 vehicles or are involved in vehicle-related services each working day.

The highest volume brand of the Group is Volkswagen. Europe’s most successful car brand has made successful inroads into the Indian market. As a first step, the Volkswagen brand launched the globally successful Passat in 2007. To expand its portfolio and cater to the upper medium segment, Volkswagen launched one of the brand’s bestselling models, the Jetta, in India in July 2008. Both sedans are being assembled locally. Also available will soon be the high-end SUV Touareg and the automobile icon the New Beetle. Volkswagen presents itself in a variety of segments as a manufacturer of premium high-volume models.

Recognizing the importance of an extensive dealer network towards scripting a long-term success story, Volkswagen is setting up dealerships spanning the entire country. They are not only laying the foundation for a substantial increase in sales but also doing the groundwork for offering a first-class all-round service, taking customer satisfaction to the highest level. Keeping this in mind the Volkswagen Group launched its first Logistics Service facility recently that would help make their dealer network become more efficient and smoothen the entire process of service.

A crucial element of the Volkswagen strategy to establish a long-term presence in India is the Group’s production facility near Pune in the Chakan Industrial Park. The investment with a total sum of 580 million euros (i.e. around 3,800 crore INR) is the biggest investment of a German company realized in India so far.

The plant, one of the most modern in the Volkswagen Group has a high level of vertical integration – not least attributable to the high share of local suppliers. The facility is the only production plant operated by a German automaker in India that covers the entire production process from press shop through body shop and paint shop to final assembly.

The recruitment is of some 2,500 employees, primarily from the region itself. With the investment, the vertical integration of suppliers and the employment of people Volkswagen will thus demonstrate its commitment to the new site. Simultaneously Volkswagen contributes to a positive development of the economy of the region and of Maharashtra at the same time. The facility has a maximum annual production capacity of 110,000 vehicles destined for delivery to the Indian market.

On March 31, 2009, the Honourable Governor of Maharashtra, His Excellency Shri. S. C. Jamir, and Prof. Dr. Jochem Heizmann, Member of the Board of Management of Volkswagen Aktiengesellschaft with responsibility for ‘Group Production’, officially opened the new Volkswagen plant in India in the presence of some 1000 international guests. “With the start of production at our new plant in Maharashtra State, the Volkswagen Group has conclusively arrived on India’s emerging market. Thanks to the local production in Pune, we will benefit even more from enormous growth on the Indian automobile market in future,” Heizmann said at the opening ceremony.

By end year 2009, it is expected that the new Pune plant will start rolling out the Volkswagen Polo. This hatchback is to be specially developed for the Indian market and will be a visible testimony to Volkswagen’s vision of “German engineering, Made in India”.

The plant epitomizes the true essence of “Indian spirit meets German excellence”.