Volkswagen Trucks Plans to Expand in Asia, Focuses on India

In order to counter the ever increasing competition in the global trucking industry from rivals such as Daimler and Volvo, Volkswagen is planning to expand its foothold in the Asian market, including India. This move, among several others in the pipeline, are also said to be a part of Volkswagen’s strategic changes to make up for the recent scandal regarding diesel emissions.

Although Volkswagen is bearing the brunt of the ‘dieselgate’ emissions scandal financially, and is currently repositioning its MAN and Scania brands to increase savings, the company remains steadfast on its expansion plans.

Apart from realigning its current brands, the auto maker is also considering a stake in Navistar, a commercial vehicle manufacturer in US, as part of a technology and purchasing alliance with the firm. Explaining Volkswagen’s association with Navistar, that will provide good entryway for Volkswagen to enter the lucrative truck market, Mr. Andreas Renschler, CEO of Volkswagen Truck & Bus GmbH said, “Our goal of course was first of all to cover the blank spot North America.”

Volkswagen also plans to strengthen its focus in India through its MAN subsidary by improving the product management in the country and by expanding its sales network in the sub-continent. Singling out the Indian country, MAN trucks chief Joachim Drees said, "I believe we can generate further growth there," Mr Drees told Reuters. "We see the potential to become better in India," he added. MAN currently sells approximately 2,000 trucks per year in the country.

However, he did not provide much clarity on the company’s plans in other parts of Asia. "You can assume that we will come up with certain ideas for Asia too," he said. Mr. Renschler, however, said that the company was planning for further expansion on the China market where its subsidiary MAN owns a stake in local manufacturer Sinotruk Hong Kong.