One of the largest automaker in the world, Volkswagen, which has 19.9 percent stake in the Suzuki Motor Corporation for 2.5 billion US dollars, selected the Maruti A Star, as the largest selling small car in India to sell in the overseas market. The Volkswagen choose this car for marketing and selling in the European market through its own network. The team from VW visited the plants of Maruti Suzuki India (MSI). Because of the A Star’s global appeal they have selected it. But the decision is yet to be finalized.
The MSI launched A Star first in European markets in February in 2009 and it is currently being exported to about 100 countries. The company markets the car as Alto in Europe, while in other regions it is sold as Celerio. Japanese automaker Nissan sells the A Star in the Europe as Pixo under the agreement between Nissan and MSI’s parent company Suzuki. The two partners VW and SMC are exploring possibilities of joint production and vehicle design.
Both the companies are planning for joint production and vehicle design which is specific for India. As SMI lagged behind in technology, both companies are planning to bring in advanced diesel technology into India from the German carmaker’s portfolio. VW is very much interested in MSI’s expertise in the production of higher volumes at low costs and at high efficiency. VW is a new entrant in to the Indian market and MSI is very established, it has 50 percent market share in the Indian automobile market.