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Kodumudi added that Volkswagen has invested 250 million euros (3 about 340 million US dollars) to develop suppliers and configure related equipment. In addition, Volkswagen invested a total of 600 million euros (about 800 million U.S. dollars) to start its Chaken factory and related local production.
A purchasing executive at Volkswagen said that in the past few years, VW’s procurement of spare parts from its Indian suppliers has been increasing and will continue to expand in the coming years.
The Chaken plant mainly produces Volkswagen and Skoda brand models. Volkswagen currently has 115 suppliers in India. When Chaken's annual production capacity reaches 250,000 to 300,000 units, Volkswagen intends to increase the number of suppliers to 150-160.
Mahesh Kodumudi, head of parts procurement for Volkswagen Group's Indian company, said: "This year, Volkswagen will purchase parts worth 90 million euros (about 120 million U.S. dollars) from its Indian suppliers. In the next 4 to 5 years, this figure will have It may grow to 300 million euros (about 400 million U.S. dollars)."