Volkswagen AG plans to double the number of workers at its new factory in India to 2,500 by the end of next year as Europe's biggest carmaker aims to take on Suzuki Motor Corp. and Nissan Motor Co.
The plant, located in Chakan near the western city of Pune, employs about 1,200 people, Ulrich Proske, finance chief of VW's Indian unit, said in an interview. The 580 million-euro ($860 million) factory started building the Skoda unit's Fabia hatchback in May and will begin making VW's Polo this week.
"We're taking advantage of the momentum in India," Proske said yesterday by telephone. The Indian automotive market will grow to 2.2 million cars and sport-utility vehicles by 2014 from 1.4 million this year, he predicted.
Volkswagen, already the largest overseas carmaker in China, is boosting its presence in India after auto sales in the world's two most populous nations withstood the global recession. The Polo subcompact will compete with models built by Maruti Suzuki India Ltd., maker of half the cars sold in the nation, as well as models from Ford Motor Co., Honda Motor Co. and Nissan.
Wolfsburg, Germany-based Volkswagen, which sold about 16,000 vehicles in India from January through October, is targeting more than 100,000 deliveries a year in the "long term," said Proske, declining to specify a timeframe. VW plans to expand its Indian distribution network to 120 dealers by 2012 from 14 last year.
'Long Way'
"There's a huge appetite for mobility, especially among the growing number of middle-class people," the executive said. "There's still a long way for us to go."
Volkswagen is introducing a hatchback Polo first at the Chakan plant and will add a version with a trunk in mid-2010. Hatchbacks account for more than 70 percent of all cars delivered in India. Honda, Japan's second-largest automaker, started selling the Jazz hatchback in India in June.
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