Volkswagen AG, Europe’s largest car maker and world’s third largest car maker (pre-earthquake Rankings) will launch the iconic Porsche sports car in the Indian market. The fleet of cars to be launched in India would include Cayman, Boxster, 911, Panamera and Cayenne.
The cars will be launched in India through a fully imported route initially and will be assembled in the current manufacturing plant at Chakan in Pune, India at a later stage when volumes pick up. VW brand which currently sells Volkswagen, Skoda and Audi for the Indian market has 5% market share. The company aims to increase its market share in the emerging market and thus seeks to expand its fleet of cars. At present, VW Phaeton and Audi R8 are brought into the country through fully imported route.
At present, the tax on cars assembled in India is 10% while that on the imported versions is 110%. Volkswagen will set up a new Sales team for luxury brand Porsche in India which will work under Anil Reddi, the current head of Sales at its subsidiary Audi. Reddi will become Managing Director of Porsche India. The operations are expected to start early 2012.