Europe’s largest car maker Volkswagen AG has signed its first sourcing agreement with the Delhi-based Minda Industries (MIL) for automotive components. MIL has signed the Rs 60-crore agreement to supply headlights and rear combination lamps to Volkswagen’s upcoming cars in India scheduled to be introduced in late 2009 and another car that will be made in Russia. 

The German company is finalising a bunch of suppliers for its India-made cars, which will be rolled out from its Pune plant that is under construction. Volkswagen India president and managing director Joerg Mueller said: “We plan to source largely from local vendors to keep our car prices low and competitive. We will launch Polo in two variants, a small car and a sedan sometime next year. We are working on a suppliers chain.” MIL, part of the Rs 1,000 crores NK Minda Group, will also supply the rear combination lamps for a car that will be manufactured by Volkswagen in Russia. Volkswagen like other international carmakers like General Motors, Ford Motor, Hyundai Motors, BMW and Daimler Motors has opened an international purchase office (IPO) in Mumbai. 

“We have big sourcing plans from India. We are looking for all kinds of automotive components for the Volkswagen Worldwide Group and scouting for vendors here,” Mueller said.