Volkswagen rolls out the Polo

The Polo rolled out of Volkswagen’s new plant at Chakan near Pune recently. The car is expected to be made commercially available at the 10th Auto Expo, reports Huned Contractor.

Having announced the commencing of manufacturing operations in May 2009, Volkswagen recently rolled out the Polo from its plant in Chekan.Described as a milestone in the successful journey into the future by the senior executives of Volkswagen AG, the Polo joins the Skoda Fabia. Technically, the first locally manufactured vehicle by Volkswagen, the Polo was formally rolled out by Maharashtra’s Chief Minister Ashok Chavan and Prof Jochem Heizmann, Member of the Board of Management of Volkswagen AG, with responsibility of ‘group production’. Speaking on the occasion, Prof Dr Heizmann said, “Today’s start of production of our Polo is more than just the rollout of a car. It marks a milestone for the Volkswagen Group in India.”

Since India is a strategic market for the Volkswagen Group and holds enormous potential for it, added Prof Heizmann, “We aim to achieve a market share of 8 to 10 per cent in the next four to six years with the three Volkswagen Group brands – Audi, Skoda, and Volkswagen – through ambitious plans for India. These products – and in particular our Polo – will help us to increase our market share of this growing market significantly.” Polo, averred Prof Heizmann, stands for first-class German engineering and superior state-of-the-art technology. He went on to describe the car, a hatchback, by describing it as a young, fresh and cosmopolitan car. “We have aligned the current model systematically and uncompromisingly with our customers’ expectations,” he remarked.

Currently made in hatchback form at Chakan, the Polo range is expected to get a new, notchback variant by mid-2010. In Europe, as a brand, the Polo has become the benchmark for the small car segment, creating its own class. The popularity of the Polo can be judged by the fact that Volkswagen has received more than 1,30,000 orders since the new model was launched in May 2009. The car was also voted ‘The Car of the Year’ – one of the oldest and most prestigious honours. Pointing at the gleaming red Polo hatchback, Prof Heizmann announced, “Customers need to be convinced of the benefits of owning a Volkswagen Group car and must want to buy it. Ultimately, the customer is a brand’s best ambassador. We are dead certain that we will bring forward the European success story of our Polo to India.” Volkswagen chose to time the roll out with the first Family Day for employees. Explained Joerg Mueller, Volkswagen Group Chief Representative India and President & Managing Director Volkswagen India Private Limited, “This is the first time that Volkswagen has celebrated the rollout of a new model together with the families of its employees. The families of our employees are an integral part of Volkswagen’s extended family.”

Interestingly, the timeframe leading up to the official start of production of the Volkswagen Polo is unusual as it is only two years since the construction of the greenfield site began at the Volkswagen Pune site. “Since construction started”, stated Mueller, “we have made great efforts to implement optimal processes and achieve a level of quality that is the standard in every Volkswagen plant throughout the world. This was a major challenge and Volkswagen is about more than just ‘cars’. It embodies a unique style that gives its products – our cars – a unique spirit.”

A key element in Volkswagen's India strategy, the scale of investment, commissioning of local suppliers and employing people primarily from the region at Chakan is said to demonstrate Volkswagen’s commitment to India. According to Prof Heizmann, his company is making an important contribution to the economic development in the region and in the Indian economy in general. The factory, with an annual capacity of around 1,10,000 cars, and with a total volume of around Euro 580 million, is the largest investment to date by a German company in India. It is also the only plant operated by a German automaker in India that covers the entire production process – from the press shop, through body and paint shops, to assembly. Built with an investment of about Rs 3,800 crore, the Chakan plant is spread over an area of 2.3 million sq.m (575 acres). Part of the modern equipment installed at the plant is the Diode Laser Brazing (DLB) technology in the body shop. For welding the roof to the body of the car, the roof and side framer laser technology is used.

The processes in the new plant have been flexibly designed. Based on the current plans, this would translate in Volkswagen producing three automobiles – the Skoda Fabia, Polo hatchback and Polo notchback primarily. A smaller car based on the Up concept could join the three in the near future. More could follow. As of present, the Polo reflects Volkswagen India’s efforts to reach the highest possible degree of localisation. Almost 50 per cent localisation has already been achieved with a target of around 80 per cent within the next two to three years. “This,” pointed out Prof Heizmann, “will enable Volkswagen India to offer cars at competitive prices and with a high level of quality.”

With headquarters in Wolfsburg in Germany, the Volkswagen Group is the largest car producer in Europe and has eight brands – Volkswagen, Audi, Bentley, Bugatti, Lamborghini, Seat and Skoda – under its wings. Of these, the Skoda brand was introduced in India in the year 2001 with the launch of the Octavia. Since then, the company has launched the Superb and Laura, in addition to setting up a manufacturing facility at Aurangabad. In addition to the Octavia, Superb and Laura, the Volkswagen Passat and Jetta are also assembled at Aurangabad. Not to be contained, the Audi A4 and A6 are also made at Aurangabad. The Aurangabad facility adds to a total of 61 production plants the Volkswagen Group operates around the world. Other than the assembled-in-India range, the Volkswagen Group markets a CBU range. This consists of the recently launched New Beetle, which is imported from VW's Mexico plant and is priced at Rs 21 lakh approximately. The other is the Toureg SUV and Phaeton.

Touching upon Volkswagen's marketing plans, Prof Heizmann said, “We will expand our dealer network to around 200 showrooms for the Volkswagen, Skoda and Audi brands over the next two to three years. And with regard to our customers we will strengthen our service offering at the same time. We recognise the importance of an extensive dealer network towards scripting a long-term success story. Our dealers are not only laying the foundation for a substantial increase in sales but also doing the groundwork for offering a first-class all-round service, taking customer satisfaction to the highest level. Keeping this in mind we have launched a Group Logistics Service facility recently that would help make the dealer network more efficient and smoothen the entire process of service.”

Polo at the 10th Auto Expo
Having bought a 20 per cent stake in Suzuki Motor Corporation for US$ 2.5 billion, the Volkswagen Group will be displaying the Polo at the 10th Auto Expo along with the range of automobiles it sells in India. Commenting on the strategy, Prof Jochem Heizmann, on the sidelines of the roll out, revealed that the plan is now to work out a synergy for hybrid and electric car projects. Speaking to a select group of media, Heizmann added it was too early to provide the details. He explained that a hybrid car could definitely be in the offing since it combines a conventional internal combustion engine propulsion system with an electric propulsion system and this is what makes it more fuel-efficient. Suzuki Motors, according to him, would be an ideal partner since it has a fuel cell technology programme. Asked about the need for such a tie-up, and Prof Heizmann explained that driving such partnerships is that globally auto companies are considering alternative fuel technologies to be able to reduce carbon emissions so as to comply with stringent environmental regulations. “This involves huge costs and sharing of technology and therefore joint ventures help,” he added. On Suzuki’s strong presence in Asian markets helping Volkswagen, Prof Heizmann explained in affirmative. He stated, “Considering the fact that Suzuki has already established niche markets in Japan and India, the venture, looking at the global scenario, will also derive benefit from Volkswagen’s presence in Europe, China and South America.” Stressing that there has been no change in the design, reliability and quality standards of the Polo when compared to the one in Europe, Heizmann said that Volkswagen would keep exploring new areas. “It is equally important to experiment with new technologies to make cars more reliable and environment-friendly,” he quipped.
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