MUMBAI: Volkswagen is adopting a “vocal for local” strategy as the global automotive industry becomes more regional, Thomas Schafer, chief executive of Volkswagen Passenger Cars, said as he announced plans to launch a locally manufactured sub-four-metre compact SUV in India in 2027.The made-for-India model is to be built on Volkswagen’s MQB-A0-IN platform, which has been localised at Volkswagen’s Pune operations.It will be the brand’s most accessible offering in the country. The company expects it to strengthen its presence in the compact SUV segment, one of the largest segments of India’s passenger vehicle market.Schafer said India had gained importance for both the Volkswagen brand and the wider group as global politics and changing trade dynamics reshaped the automobile industry. “The automotive industry has become more vocal for local or a more regional reorganised industry, which in the past it had not been,” Schafer said. “Now we see cars made in China for China, we see a lot that happening here in India. We see a lot of dynamics in the US.“He said the shift created opportunities for Volkswagen to expand its presence in India into research, development and information technology. On the awaited local partnership, Schafer said “We are exploring all options with what we can do in India because it has such importance for us. And one of them is talking to a few local partners and we believe that that’s a good way forward. But it’s too early to now announce anything. It’s not there yet. But it’s also not years away”.Schafer said India’s automotive ecosystem offered opportunities in the changed global environment. The company also saw scope to expand its links with Europe and other markets as trade agreements evolved. India already serves as an export base for Volkswagen, with vehicles shipped to more than 40 countries, including Mexico. Schafer said both sides had benefited from the relationship and that the company was willing to explore further opportunities. “India is a market of enormous scale and ambition, and this new compact SUV marks an important step in Volkswagen’s journey here,” Schafer said.“We are bringing our global expertise in building cars that people love to drive and own into a segment of great importance to Indian customers. This model is being developed specifically for India, and it reinforces our long-term commitment to the Indian market as part of our global growth strategy.”
