While the alliance between Suzuki Motor Corporation and Volkswagen Group gives a lot of independence as far as costs of the model, platform sharing etc. is concerned, but the fact of the matter is, it is becoming a threat for other players.

The CEO & President of Honda SIEL Takashi Nagai has recently said that the Suzuki-Volkswagen alliance is surely very worrying for Honda in India as it will push the Japanese auto major to launch competitively priced models in the Indian market while maintaining its brand value in the minds of the consumer.

It may be recalled here that Volkswagen picked up 19.9% stake in Suzuki Motor Corporation last year. In fact, it has been learned that Maruti will help Volkswagen in developing the sub Rs. 4 lakh car for the Indian market. With the Maruti expertise in the small car segment, the alliance among the two parties is expected to benefit Volkswagen.

It may be noted here that Volkswagen currently has a budget product, Polo in the Indian market and its sister company, Skoda offers Fabia in the Indian market.