India's top car maker Maruti Suzuki may manufacture cars for German auto firm Volkswagen's global market on a contract basis, three newspapers said on Thursday, citing Maruti's managing director.
The talks with Volkswagen are going on at a global level and there is still no clear picture. There is a possibility of an OEM (original equipment manufacturing) supply contract with them, like we have with Nissan, Shinzo Nakanishi was quoted as saying by the Hindu Business Line newspaper.
But, there was no possibility of platform sharing as the German company's production and product development costs were huge, which could affect Maruti's business viability, Nakanishi, who is also Maruti's chief executive told The Economic Times.
Maruti Suzuki currently has a three-year contract with Nissan to make and export the Pixo hatchback to European markets. The contract, for a minimum of 35,000 units a year is set to expire in 2011, the Hindu Business Line report said.
Volkswagen bought a near 20-percent stake in Maruti's parent Japan's Suzuki Motor Corp in January.
(Reporting by Bharghavi Nagaraju; editing by Malini Menon)