VW looks to India for new ideas

VW: German car manufacturer Volkswagon is considering setting up a major R&D and engineering centre in India from where it can develop and test new models and products also intended for export to other international and pan-regional  markets including South America, the Middle East & Russia, its global head of sales and marketing Jurgen Stackmann told journalists at the Paris Motor Show that ended yesterday.
“We have a strong presence in India, but we don’t have a sufficiently strong engineering presence in India to make this a future engineering hub for our work,” he said, “India already has nine or ten big engineering and development hubs for other brands. We are very keen to look at India from that perspective as well.”  The thinking at the highest echelons of the company was that  if you can get it right in  India, you can probably make good across the rest of the world he explained.
Vokswagon’s decision comes in the wake of last year’s diesel emissions scandal which saw the company record its first annual loss for more than 20 years after it was forced to set aside €16.2bn (just over $18bn) to cover costs relating to its admission that it had installed software to cheat US emissions tests in eleven million vehicles.
India’s  automotive industry is the fifth  largest in the world and accounts for 7.1% of the country’s GDP. Exports are also on the rise, with  annual overseas sales growing by 15% in 2014-15. In August Ford India overtook  Hyundai Motor India as the country’s largest exporter for the month although the Korean manufacturer still leads the field for the fiscal year so far.

Source: indiatimes