Nilanjana Ghosh Choudhury

Pune: German carmaker, Volkswagen (VW), has decided to set up an industrial park close to its upcoming plant site at Chakan on the Pune-Nashik highway. It would be built across 200 acres and will serve as an important base for some of VW’s suppliers.

The move comes in wake of the company setting up its plant at Chakan, which will begin with the rollout of the Fabia next year. At present, it is being assembled at the Skoda plant in Aurangabad.

The industrial park will help Volkswagen focus aggressively on its localisation agenda for India.

Thomas Dahlem, manufacturing engineering director of the Indian arm said on Wednesday that the industrial park would house key suppliers close to the car plant.

VW’s own brand, the derivative of the Polo will follow in 2010. The Rs 3,500 crore Chakan car plant has an installed capacity of 1,00,000 units per year.

“The industrial park will ensure quicker delivery of different auto parts to the plant. Talks are on with some major vendors,” he said. Industry sources say that the plan could kick off with 8-10 suppliers and more could follow thereafter.

Having the supply chain at arm’s length, will help VW keep its logistics cost in check. Indications are that - critical parts will be made locally, though there is no update on any localisation plan for the engine.

The vehicles from the plant will come in both diesel and petrol versions, keeping in mind the rapidly changing fuel preferences of the Indian consumer.

It was in mid-2006 the state government granted land to Volkwagen to set up its plant at Chakan. The decision to set up a plant near Mumbai has been taken, considering plans to export cars at a later stage.

Source : DNA