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Volkswagen India to shut production at Chakan plant for another month

The company has also confirmed the discontinuation of the Ameo sedan, which had been specifically designed for the Indian market.

November 26, 2019 / 11:35 AM IST

Skoda Auto Volkswagen India has confirmed that it will be shutting down production of vehicles at its Chakan plant, from mid-December to mid-January. This will be the second time the German carmaker shuts down its production for a month, with the previous shutdown lasting from mid-October to mid-November.

The company is facing troubles in the automobile segment as it's export markets are slowing down, its domestic volumes have hit the lowest point since a decade and the discontinuation of the diesel engines is expected to add to the company’s troubles.

As per a report in Economic Times, one of the five people who know about the company’s plans stated, “With its modular MQB architecture being implemented in more markets around the world, the demand for Indian products, which are based on the old generation PQ25, has been gradually going down. The low offtake in the domestic market is not helping either. There is a pressure to install the MQB line in India at the earliest to align with global production.”

The company has also confirmed the discontinuation of the Ameo sedan, which had been specifically designed for the Indian market. It is also expected to offer fewer engine options after the implementation of the BSVI emission norms from April 1, 2020.

Volkswagen currently has 4-5 cars in its lineup, which is causing a decline in the average sales of the company. While the market registered a decline of 15 percent from January to October 2019, Volkswagen India had a steeper fall of about 18 percent.

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The company also faced a major blow in sales when VW Mexico dropped its sales figures. Mexico is the biggest overseas market for Volkswagen India, thus hampering its economics with the decline in sales.
Moneycontrol News
first published: Nov 26, 2019 11:35 am

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