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Volkswagen, Maruti in collaboration talks for Indian market news
20 May 2010

German car major Volkswagen and Maruti Suzuki (MSIL) are in talks with for joint engagement in a number of areas with VW officials having already visited MSIL to chalk out areas of cooperation between the two auto majors according to a report in The Times of India.

Joerg Mueller, chief representative of the VW group said the companies were trying to thrash out areas where partnerships and joint strategies could be worked out for the Indian market according to the report.

He confirmed that representatives from VW's international office as also Indian operations had visited Maruti's facilites, the report said.

The report said Maruti officials are also believed to have visited the premises of VW India, though a company spokesperson declined comments.

The talks of engagement between VW and Maruti have come within months of the German company's acquisition of a near 20-per cent stake in Suzuki, Maruti's Japanese parent  (See: VW acquires 19.9-per cent stake in Suzuki for $2.5 billion). Analysts had at the time said that VW's interest in Suzuki could be due to its stronghold on the Indian market through Maruti.

Though a formidable car player in most of the major markets including China, VW, has only a limited presence in the fast growing Indian market. The company's hatchback offering the Polo has to go a long way for it to make any sizeable gains which brings in the joint strategies and engagements with Maruti, a leading player in small cars with an extensive coverage of the market which could be leveraged by VW to change the game in its favour according to analysts.

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Volkswagen, Maruti in collaboration talks for Indian market