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.