Volkswagen AG (ADR) (OTCMKTS:VLKAY): Begins Vento Exports To Mexico

Volkswagen AG (OTCMKTS:VLKAY) said in a statement on Wednesday, October 09, 2013 that, Volkswagen India Pvt. Ltd. is going to export Vento sedan model to Mexico, which makes it the single biggest export market for Volkswagen India.

In 2011, Volkswagen India started its manufacturing of exporting cars at its plant located in Pune with shipments to South Africa. With exports to West Asia, in 2012, it has also entered in to the left-hand drive market.

Further, the company stated that, in its strategy of growth, the extension of exports of the left-hand drive Vento in to the Mexican market is its subsequent big step. From the export volumes manufactured at the plant located at Pune, every second car will go to Mexico in a year of full production, which will make it the single largest export market for Volkswagen India.

The manufacturing of the left-hand drive Vento car for the market of Mexico has started and the first lot of cars has already been transmitted and in coming November, it will go on sale.

Mahesh Kodumudi, who is the president and MD (managing director) of Volkswagen India, said that, the Vento car has been specially designed and made for customers of India. But, the doors for exporting this car to various other markets has opened as in a competitive market like India its success is uncertain.

The company’s sales in the domestic market have been under pressure, because of increasing competition in the market and absence of any new model as well.

As reported by the Society of Indian Automobile Manufacturers, in the period of last five months, from April to August, sales of the company have declined from to 3% or 24,582 units. However, exports have rose though on a low base but still the number comes to 9528 units in the same period of five months.

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