Maruti with a VW badge?

Imagine you buy a Volkswagen and it turns out to be a Maruti inside! Well, this thought might just spring out of your imagination and become reality if talks between Volkswagen and Maruti are successful. The two companies are discussing about sourcing models. Volkswagen (VW) wishes to source certain models from Maruti Suzuki India and sell them under its own badge, according to reports in the media. As per report published in an English daily and other news sources Volkswagen has its eyes set on cars like Maruti Ritz and Maruti Wagon R. Both the cars suit the company’s portfolio and image. While Wagon R suits the Skoda brand more, cars like Maruti A Star suit the Volkswagen badge more.

 
The most likely thing is that the company might push these vehicles with a few cosmetic changes and an added premium. Volkswagen might in the future look at sourcing Maruti’s engines, components and aggregates for its models in India. VW’s production structure is too expensive for the low end products that are very price sensitive but form a major part of the Indian car market. However, none of the companies are ready to comment just yet.
 
Currently, Volkswagen is present in the hatchback segment with the Volkswagen Polo (1.2 litre) that is priced at Rs 4.42 lakh and the hatchback by its sister company Skoda Fabia (1.2 litre petrol) for Rs 5.08 lakh.
 
After the deal between the two companies in December Volkswagen owns nearly 20 percent stake in Suzuki Motor Corp, which in turn has majority stake in Maruti Suzuki India. Maruti has the largest market share in India and boasts of the most extensive dealership network. But if Maruti decides to share its top selling models and other assets then the company would need something substantial in return like sharing of technological know how from VW.
 
Apart from this Maruti has a similar deal with Nissan Motor Co. Maruti supplies the A-Star to Nissan with cosmetic changes like butterfly windows for rear doors, new front grille, modified bumpers etc. the car is then sold as Nissan Pixo.