Suzuki-VW may source parts jointly

Suzuki-VW may source parts jointly One cannot show back to the fact that Maruti Suzuki did a mistake in reading the Indian passenger car market this year and hence is currently facing a situation of supply crunch and is unable to meet the high demand of the Indian consumer.

However, the company has recently earmarked close to $416 million for the manufacturing of its new plant at Manesar and it is expected that the VW-Suzuki partnership activities will catch pace in times to come. It is expected that the duo will source components jointly as it will give the pricing power on the same.

It was announced a few days back that Maruti will be helping Volkswagen in developing the car below Polo and with the two giants planning to align their sourcing activities, it is expected that the companies will grow very big in size as compared to the competition.

As mentioned by Osamu Suzuki, Chairman, Suzuki Motor corporation during his last visit to the country the two companies have no plans to sell their products under the same roof but the companies will be looking at opportunities that will empower them to leverage from each other strengths.