Report – VW India to export Vento to Mexico


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Economic Times reports that VW India, the Indian subsidiary of the German car maker, will soon export the VW Vento to Mexico. The company plans to export 25,000 to 30,000 units of the Vento in the coming 12-18 months. Export to Mexico is expected to make up for 20-25% of the Chakan plant’s overall production.

VW Vento white

VW India already exports to over 30 markets in both LHD and RHD configurations. The made-in-India Vento (also known as the Polo Sedan in some markets) is exported to markets such as the Middle East and Malaysia already.

Mahesh Kodumudi, president and MD of Volkswagen India said –

The primary intent for setting up the Pune plant was to cater to the domestic Indian market. However, with economic growth stalling, domestic demand for automobiles has weakened at a record pace. Besides, with the rupee plunging, we are forced to re-think our strategy. We are increasingly exploring more and more export markets. Currently, we are exporting CBUs and parts & components to over 30 countries with exports to many more countries in the pipeline.

VW Polo and VW Vento
VW India plans to increase the local content from 70% to 80-95% in the coming years.

Given that the weak rupee is not really helping, VW India is also working on increasing localization from the current 70% to 85-90% in the next few years. Mr. Kodumudi said –

We are vigorously pushing forward activities related to increasing the extent and depth of local manufacturing of parts and components.

[Source – Economic Times]

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