VW is to take a 19.9% stake in Suzuki, with Suzuki in turn re-investing up to half of the proceeds in to Volkswagen shares, all meant to help gain good and fast access to the growing Indian market, that might be a saviour for brands like VW. This deal has been in the making for quite some tine now, with Volkswagen probably being prompted at least to finish the contrat what with all these signs of changes in the automotive world. To be more precises, signs that the only path to survival and, hopefully, flourishing is that of deals, partnerships and co-working with other major brands. Especially when it comes to stepping into new territory.

VW has had its corporate eye on Suzuki for its expertise in areas that VW doesn’t. In particular, VW see Suzuki as a quick in to the burgeoning Indian market. Suzuki already has 50% of the domestic market in India through its Maruti Suzuki India Ltd business, and VW sees this as a shortcut to moving VW cars in India. The expertise Suzuki has with low-cost fuel-efficient cars also brings something to the table for VW.

VW and Suzuki, parterns in a plan for India

VW and Suzuki, parterns in a plan for India

Suzuki and VW have held a press conference to announce the deal. Osamu Suzuki, CEO of Suzuki, said that they plan to develop s range of hybrid and electric car solutions which will be marketed by both companies.

We will see if with this deal, aided by Suzuki and backed-up by European money, Volkswagen will step upwards and establish itself as a strong player in the Indian market, and thus tick another stage in it’s world domination plan. Or if it will just start making some so-and-so small cars to sell in India. Or maybe if it will just fail. Cars of the People, as the name stands, or just over-ambition and dubious deals? We do not rush to smile at news of such deals, and 19.9% is a large number. Time will tell… and we will keep you posted on the way.