For the last few weeks, I am repeating this matter again and again that if a company wants to make the most out of Indian market then 'it is now or never.' This is perhaps even truer for the Indian car market because in just 4 years the size of Indian car market is going to be double (from one million cars now per year to two million by 2010). So, this is perhaps the best time to cash in and Volkswagen bosses have realized this matter. Volkswagen is going to invest nearly $330 million to set up a manufacturing plant in the state of Punjab. It will create more than 5,000 jobs directly and another 50,000 jobs will be created as a result of this plant.
Volkswagen is not a very important brand name in the Indian car market at this moment. For example, in 2006, the company is aiming for selling just 13,500 in India. However, after plant goes into operation, Volkswagen will have an annual production capacity of 100,000 cars.
For international companies in the field of automobile, computer hardware and mobile phone- this is 'the time' to come to India and make their mark.
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Hi Razib,
Thanks for your comment. I agree the potential is enormous! Better still is potential for wealth creation generated from exports and new employment. From the Volkswagen plant alone, it is expected that 5000 people will work directly and another 50000 will benefit from related industries like auto parts. Can you imagine the employment generated at the service end with more garages coming up to meet the demand for servicing these cars! An improvement in the infrastructure like the construction of roads and power plants will only boost this industry further.
Posted by: Soothsayer | June 12, 2006 9:00 AM | Permalink to Comment