Volkswagen aiming at big markets in Asia

Volkswagen aiming at big markets in Asia

By Alexander Corne

Volkswagen is "more or less a player" in China, according to the company's vice president of strategy and new business development for Asia Pacific, Dr. Lutz Wagner.

Although the company has a production capacity of 600,000 cars annually, it faces challenges from new manufacturers setting up in China, and is cautious about new players entering the market after new production license agreements are signed next year.

"We need to look for another big market in Asia," Wagner said, adding that production in China could find its way to Indonesia at some stage in the medium term.

He also said speculation in Wolfsburg indicated that Volkswagen was likely to sign a joint venture deal with an Indian carmaker soon.

The Volkswagen supervisory board, which monitors the company's activities, is expected to rubber stamp the joint venture deal in India. India is expected to consume as many as 300,000 cars next year and as many as 800,000 annually by the year 2000.

The joint venture would produce Volkswagen vehicles but not Audi, which has a little or no profile in India.

Wagner said current generation technology will be used in cars built in India.

Wagner also said that part of Asia's coming of age was reflected in Japan's growing willingness to accept product built in Asia, in countries it thought less highly of previously.

Mitsubishi Motors Corp is said to have started an offshore production plant in Asia with the aim of reimporting finished products to Japan.

He said that within three years, Asian-produced cars could be on sale in Japan.