The proposed JV between the German car maker Volkswagen and the Japanese supreme Suzuki is getting a kick off from January 10, said Suzuki ‘s chief executive. Under the tie-up, VW will be entitled to have 19.9% share in the Suzuki and the official exchange of information and technology will take place from this date, said the CEO Suzuki. Their imminent need is to have a small car for the global market to expand the sale.
The car would cost $4300-$5400 and the apex body has the mandate for this in India (Maruti is no where in the picture). Suzuki tops the list in making 660cc mini vehicles and is in Japan only with a preferential tax relief. But the experience in micro cars have made the company to rethink in terms of mini cars on fuel efficiency. The Alto, launched 30 years ago, costed 470000 yen ($5250) and proved to be an instant success.
The car proved to be a trigger for the entire auto industry and by now it has crossed 10 million mark. Suzuki plans to deliver an average of 7000 Alto units a month in Japan. The current price in Japan is 677250 yen ($7561) for the commercial and 732900yen ($8183) for the passenger car. Suzuki has dropped the growth potential hope for 660cc in Japan and the sale would be down by 10% this year end @1.68 units.
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