Re-badged Suzukis for India (IN)

Under the Volkswagen-Suzuki tie-up last year, rebadged Suzuki Altos and Wagon Rs could be sold as VW�s and Skoda�s in India.

According to sources, Volkswagen and Suzuki are conversing about rebadging the current Alto as a Volkswagen and the Wagon R as a Skoda, starting in 2012.

These will slot in the range initially allocated for the variants of the Up/Lupo city-car that Volkswagen, Skoda and Seat are developing for Europe. The Up/Lupo won�t be sold in India because of the technology in the cars, with the cost to set up production nearby to avoid high import duties on European-sourced production, will price them out of the market.

Due to tight deadlines and cost-cutting, the revisions will strictly be limited to altered headlights, bumpers and minor trim. Interior and metalwork will remain intact. It is understood that VW may be arranging to drop a Fiat-sourced 1.3 MultiJet diesel, which Suzuki assembles under licence in India for the Alto and Wagon R.

Production is likely to be given to Volkswagen�s Chakan factory, given that Suzuki�s plant which is operated under the Maruti brand is working hard meeting demand. Last year, Suzuki/Maruti manufactured 1.1m vehicles for a 54% share, and will have to add an additional 500,000 to please the growth to 3m units a year expected by 2012.

Exports of the rebadged vehicles seem highly unlikely, unless Eastern Europe demands extra low-cost cars.