Wheelosphere was the first Indian automobile blog to report about VW’s plans to acquire shares of Japanese small car major Suzuki Motors Co. We reported this news exactly one year before the actual deal happened. Now more interesting news coming out of this partnership. Today Manager Magazine reported that VW planning to create their small car family on Suzuki platform.
Japanese has proven their skill in making successful, fuel efficient and affordable small cars. This ability made them leaders in one of the fastest growing automobile market, India. Now Germans wants to capitalize their partners skills in developing small car. As we reported earlier, the VW UP! may be rolling out from India, i.e. Maruti Suzuki Plant in Gurgaon. Don’t take it as a silly joke, VW UP!’s costing projections are flying out of roof. But the VW UP! on Suzuki small cars platform costs much lesser than VW version. The differential cost between these two variants is in tune of 20 percentage.
The outcomes of Suzuki-VW partnership will not end there. VW is actively considering to use Maruti Suzuki’s dealer network to support their aggressive Indian market share plans. Also VW and Suzuki will develop a range of fuel efficient yet low cost small cars for world market. Suzuki on the other hand started gaining benefits of their German partnership, soon Suzuki small cars will get VW diesel engines. So this partnership will change the equations in Indian small car market which rule sixty percentage of India’s automobile market.
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