The 19% stake that Volkswagen AG picked up in Suzuki Motor Corporation last year has started to take shape as far as the Indian subsidiary is concerned and it has been learned that the Indian subsidiary of the Japanese auto major will help Volkswagen in developing the sub-4 lakh model that the company is planning for the Indian market.

It may be noted here that the Volkswagen Group currently has two hatch models in the Indian market i.e. the VW Polo (1.2 litre) with the base version priced at Rs 4.42 lakh and the Skoda Fabia (1.2 litre petrol), which sells for Rs 5.08 lakh in the domestic circuit.

However, as the company is now planning an entry in the sub-4 lakh segment, it is expected that the model will bring high volumes to the door of Volkswagen in the Indian market.

And as Maruti specializes in the development of the small cars, getting help from the market leader may prove very effective as a strategy for the German auto major.

It is believed that when Osamu Suzuki will visit India later this month, he will be discussing these strategies with the India officials and the strategy map will be a lot clearer.