Multinational companies are the organizations or enterprises that manage production or offer services in more than

one country. And India has been the home to a number of multinational companies. In fact, since the financial
liberalization in the country in 1991, the number of multinational companies in India has increased noticeably. Though
majority of the multinational companies in India are from the U.S., however one can also find companies from other
countries as well.

Destination India

The multinational companies in India represent a diversified portfolio of companies from different countries. Though
the American companies - the majority of the MNC in India, account for about 37% of the turnover of the top 20 firms
operating in India, but the scenario has changed a lot off late. More enterprises from European Union like Britain,
France, Netherlands, Italy, Germany, Belgium and Finland have come to India or have outsourced their works to this
country. Finnish mobile giant Nokia has their second largest base in this country. There are also MNCs like British
Petroleum and Vodafone that represent Britain. India has a huge market for automobiles and hence a number of
automobile giants have stepped in to this country to reap the market. One can easily find the showrooms of the
multinational automobile companies like Fiat, Piaggio, and Ford Motors in India. French Heavy Engineering major
Alstom and Pharma major Sanofi Aventis have also started their operations in this country. The later one is in fact
one of the earliest entrants in the list of multinational companies in India, which is currently growing at a very enviable
rate. There are also a number of oil companies and infrastructure builders from Middle East. Electronics giants like
Samsung and LG Electronics from South Korea have already made a substantial impact on the Indian electronics
market. Hyundai Motors has also done well in mid-segment car market in India.

Why are Multinational Companies in India?

There are a number of reasons why the multinational companies are coming down to India. India has got a huge
market. It has also got one of the fastest growing economies in the world. Besides, the policy of the government
towards FDI has also played a major role in attracting the multinational companies in India.

For quite a long time, India had a restrictive policy in terms of foreign direct investment. As a result, there was lesser
number of companies that showed interest in investing in Indian market. However, the scenario changed during the
financial liberalization of the country, especially after 1991. Government, nowadays, makes continuous efforts to
attract foreign investments by relaxing many of its policies. As a result, a number of multinational companies have
shown interest in Indian market.

Following are the reasons why multinational companies consider India as a preferred destination for

business:

 Huge market potential of the country

 FDI attractiveness
 Labor competitiveness
 Macro-economic stability
Volkswagen India
With the promise of "Volkswagen quality built in India", the Volkswagen group distributes locally manufactured and
imported vehicles in India, reflecting the trademark excellence of German engineering.

Click here to explore the A brief journey through a long history

heritage of Volkswagen
When in 1937 the company known as "Gesellschaft zur Vorbereitung des Deutschen
Volkswagens mbH" was founded, no one could have guessed that it would one day be
Europe's largest carmaker. The history of the company - with all its trials and tribulations
- is first and foremost a story of impressive success.

1937-1945
On May 28th, 1937 the "Gesellschaft zur
Vorbereitung des Deutschen Volkswagens mbH"
company is founded, and on September 16th,
1938 it is renamed "Volkswagenwerk GmbH". In
early 1938, in what is today Wolfsburg, work
begins on construction of the Volkswagenwerk
plant which is to house production of the new
vehicle designed by Ferdinand Porsche.

During the Second World War Volkswagenwerk's

production is switched to armaments. Some
20,000 forced labourers, prisoners of war, and
later also concentration camp prisoners, work at
the plant.

In September 1998, in recognition of the events

of that time, VOLKSWAGEN AG established a
humanitarian fund on behalf of the forced
labourers compelled to work at Volkswagen
during the Second World War. By the end of
2001 more than 2,050 people in 26 countries
had received humanitarian aid from the fund.
Furthermore, a Memorial in remembrance of the
forced labour employed at the Volkswagenwerk
plant is currently being established at Wolfsburg,
involving contributions from present-day
Volkswagen apprentices.

1945-1949
After the end of the Second World War, in mid
June 1945, responsibility for Volkswagenwerk is
placed in the hands of the British Military
Government. Under the management of Major
Ivan Hirst, mass production of the Volkswagen
Beetle is started.

1949-1960
On March 8th, 1950 the Type 2 goes into
production, expanding the company's product
range. The Volkswagen Bus, still today known to
many as the "VW Bully", soon creates rising
demand thanks to its multifunctional capabilities.
In 1956 a separate manufacturing base for the
Transporter is established in Hanover, at the
same time setting down the roots of today's
Volkswagen Commercial Vehicles brand.

1960-1980
On February 17th, 1972 Volkswagen breaks the
world car production record: with 15,007,034
units assembled, the Beetle surpasses the
legendary mark achieved by the Ford Motor
Company's Model T, popularly known as the "Tin
Lizzy", between 1908 and 1927.

In 1973 the Passat is the first model of the new

generation of Volkswagen vehicles to go into
production - with front-wheel drive, a water-
cooled four-cylinder engine and a range of
engines up to 110 bhp. The Passat is built in line
with the modular strategy, by which standardised
components usable in a range of different
models provide significant rationalisation.

In January 1974 the first Golf is built at the

Wolfsburg plant. The compact saloon quickly
becomes a hit, and advances to become the
legitimate heir to the legendary Beetle. The
same year also sees the launch of the sporty
Scirocco, which was to continue in production
until 1981.

In 1976 the first Golf GTI rolls off the production

line. The car, with its110 bhp engine, creates a
real furore on the roads - and lays the
foundations for the birth of a legend.

1980-1990
In June 1983 production of the second-
generation Golf begins. The car is designed for a
largely automated assembly process, and in the
specially erected final assembly hall, designated
Hall 54, robots are deployed for the first time in
vehicle manufacture.

1990-2000
With the production launch of the Lupo 3L TDI,
the first production car to offer fuel consumption
of just three litres per 100 kilometres, in July
1999, Volkswagen once again makes automotive
history.

2000-2003
In August 2002, at Volkswagen Slovakia, a.s. in
Bratislava, mass production of the Touareg, a
luxury-class off-road vehicle, is started, marking
the Volkswagen brand's move into an entirely
new market segment.
 In December 2002 the "Auto 5000 GmbH"
company, operating a plant at the Group's site in
Wolfsburg, starts production of the Touran
compact van. A special collective pay model has
been developed, aimed at implementing lean
production and involving flat hierarchies, team
working, flexible working hours and the
deployment of more process expertise by the
workforce.

In 2003 production of the fifth-generation Golf is

started, embodying a new dynamism in its
design and engineering.

Welcome to Volkswagen India.

With its headquarters in Pune, Maharashtra (India), the Volkswagen Group is represented by three
brands in India: Volkswagen, Audi and Skoda. The Volkswagen Group is completing 10 years of its
India journey which began with the entry of the Skoda brand in 2001, Audi brand and Volkswagen brand
in 2007. Each brand has its own character and operates as an independent entity in the market.

Volkswagen Group India is a part of Volkswagen AG, which is globally represented by 9 brands- Audi,
Bentley, Bugatti, Lamborghini, Scania, Seat, Skoda, Volkswagen Commercial Vehicles (Volkswagen
Nutzfahrzeuge) and Volkswagen Passenger Cars. The product range extends from low-consumption
small cars to luxury class vehicles and trucks. The Group operates 60 production plants around the
world. In total more than 370,000 employees produce more than 26,600 vehicles or are involved in
vehicle-related services each working day.

The highest volume brand of the Group is Volkswagen. Europe’s most successful car brand has made
successful inroads into the Indian market. Volkswagen presents itself in a variety of segments as a
premium manufacturer of high-volume models. As a first step, the Volkswagen brand launched the
globally successful Passat in 2007. To expand its portfolio and cater to the mid segment, Volkswagen
launched one of the brand’s bestselling models, the Jetta, in India in July 2008. Both the sedans are
being assembled locally. The iconic New Beetle and the high-end SUV Touareg were introduced in
December 2009. Also available is the high-end automobile Phaeton.

From December 12, 2009 the new Pune plant has started rolling-out the hatchback version of the
Volkswagen Polo.
 The made-in-India Polo was presented to the general public for
the very first time at the Auto Expo 2010. The launch of this
premium hatchback in March, brought access to one of the
Indian passenger car segments with the highest-volume unit
sales.

Skoda entered the Indian market in 2001. Its plant in Aurangabad, which assembles a total of eight
models including the Audi A6 and Audi A4 as well as the Volkswagen Passat and Volkswagen Jetta,
has been instrumental in this achievement. For Indian customers, the name of Skoda stands for high-
quality, robust yet affordable cars in the compact, lower mid-size and mid-size ranges. In terms of
models, the Skoda product offering in India ranges from the Fabia through the Octavia, the Laura to the
Superb. Skoda lifted the veil off its international bestseller SUV Yeti for the first time in India at the Auto
Expo 2010.

Audi offers high-end models of interest to Indian customers. With the A8 and the Q7, the A6, the A4 and
not forgetting the R8, the TT and the recently introduced Q5, Audi offers top-quality, technically brilliant
cars with an exclusive flair in the relevant luxury segments. Audi’s positioning as a leading manufacturer
of such high-class vehicles, both assembled in India and imported through Audi India, will be
systematically pursued in future. At Auto Expo 2010, Audi also unveiled the Audi Sportback Concept – a
five-door model offering a glimpse into Audi's future design vocabulary.

Recognizing the importance of an extensive dealer network towards scripting a long-term success story,
the brands of the Volkswagen Group are setting up dealerships spanning the entire country with
Volkswagen, Skoda and Audi having in total around 120 dealerships across the country today. They are
not only laying the foundation for a substantial increase in sales but also doing the groundwork for
offering a first-class all-round service, taking customer satisfaction to the highest level. Keeping this in
mind they launched their first Group Logistics Service facility recently that would help make their dealer
network become more efficient and smoothen the entire process of service. In the period between
January 2009 and December 2009, the three brands of the Volkswagen Group have together sold
around 19,000 vehicles in India, an increase of 1.4% over 2008 in a year marked by recession in the
auto industry.

A crucial element of the Volkswagen’s strategy is to establish a long-term presence in India is the
Group’s production facility near Pune in the Chakan Industrial Park. The investment with a total sum of
around INR 3,800 crore (580 million Euros) is the biggest investment of a German company realized in
India so far. The plant, one of the most modern in the Volkswagen Group has a high level of vertical
integration – not least attributable to the high share of local suppliers. The recruitment is of some 2,500
employees at the end of 2010, primarily from the region itself. With the investment, the vertical
integration of suppliers and the employment of people Volkswagen will thus demonstrate its
commitment to the new site. Simultaneously Volkswagen contributes to a positive development of the
economy of the region and of Maharashtra at the same time.

The new plant was inaugurated by The Honourable Governor of

Maharashtra, His Excellency Shri. S. C. Jamir, and Prof. Dr.
Jochem Heizmann, Member of the Board of Management of
Volkswagen Aktiengesellschaft with responsibility for ‘Group
Production’ end of March 2009 and has begun building the
Skoda Fabia compact car in May 2009. The launch of Polo, the
hatchback car, is a visible testimony to Volkswagen’s vision of
“Mobility - Made in India”. By mid of 2010 the hatchback version
will be followed by a sedan, also based on the new generation of
the Polo but entirely different to the hatch.
In recognition of its efforts in India, Volkswagen India won the coveted ‘Automotive Company of the
Year 2010’ award at the Inaugural Golden Steering Wheel Awards India presented by the leading
automotive magazine, Auto Bild India.

Dual Clutch Gearbox

The latest innovation from Volkswagen's transmission development department is the DSG® dual-
clutch gearbox. What makes the fully automatic six-speed gearbox truly stand out is that it allows
gearshifts to be made without any interruption to the power flow. Consequently, the gear changes
are extremely smooth and barely perceptible to the occupants. The dual-clutch gearbox features two
wet clutches acting via two drive shafts, with clutch 1 engaging 1st, 3rd, 5th and reverse gear and
clutch 2 responsible for engaging 2nd, 4th and 6th gear. When a gear change is made, the next gear
is already pre-selected but not yet engaged. It takes just three to four hundredths of a second for one
clutch to engage while the other is released. This enables gearshifts to be performed without the
driver even being aware and without any break in the power flow. Depending on the preferred driving
style, the intelligent control electronics allow fuel savings of up to 10 percent to be made compared
to a 6-speed manual gearbox. The driver can operate the DSG® gearbox manually or allow gear
changes to take place automatically. In the automatic mode there is a choice between the well-
balanced, extremely smooth standard shift setting and a shift mode with a much more sporty
emphasis. Manual shifts are made either at the selector lever or using the shift paddles or buttons on
the steering wheel

Auto Hold function

The Auto Hold function in Volkswagen's new Passat and Passat
Estate is an extension of the electronic parking brake. The Auto
Hold function prevents the vehicle from rolling away accidentally
when standing still or when setting off. In this way Auto Hold
offers the ultimate in convenience and comfort when driving or
setting off, along with enhanced safety. The system is operated
via the ABS/ESP hydraulic unit. When the vehicle is braked to a
standstill, Auto Hold retains the last-applied braking pressure.
The driver can take his/her foot from the brake pedal and all four
wheel brakes will remain on. If the ABS wheel speed sensors
detect any rolling, the braking force is automatically increased
until the vehicle comes to a standstill again. This may be the
case if, for example, the driver brakes gently to a stop on an
incline. As soon as the driver presses the accelerator again and,
in the case of manual gearboxes, releases the clutch, Auto Hold
reduces the braking pressure once more. For safety reasons the
function always has to be reactivated by means of a button to
the left of the gear lever when the engine has been switched off.
 TDI
Volkswagen has many years' experience in TDI technology. In
many countries, TDI is a registered trademark of Volkswagen
AG. The TDI badge identifies all the Group's diesel-powered
models featuring diesel direct injection and a turbocharger.
Characteristic features of the TDI engines are fuel economy, low
emissions, high pulling power (torque) and outstanding power
efficiency. Functionality: A turbocharger supplies the engine with
fresh air, thereby providing optimum cylinder charging. After
compression, the diesel is injected directly into the cylinders at
very high pressure by way of a nozzle. Effective engine
encapsulation keeps noise to a minimum, while hydraulic engine
mounts ensure smooth, low-vibration running.

Electronic Stabilisation Program

The electronic stabilisation program detects critical driving situations, where
there is a risk of the vehicle skidding for example, and implements effective
measures to prevent the vehicle from breaking away. To enable the
electronic stabilisation program to respond to such critical situations, the
system must be fed constantly with data: for example, what direction the
driver is steering in and what direction the vehicle is moving in. The answer
to the first of these questions is provided by the steering angle sensor and
the ABS speed sensors on the wheels. These two items of information allow
the control unit to calculate the target steering direction and the target
vehicle behaviour. Additional key data include the yaw rate and the lateral
vehicle acceleration. The control unit uses this information to calculate the
vehicle's actual status. The electronic stabilisation program prevents the
vehicle from being destabilised when cornering as a result of either
excessive speed, an unexpected change in the road surface (water, ice, dirt)
or the driver having to perform a sudden evasive manoeuvre ("elk test"
situation). The system takes corrective action regardless of whether the
instability manifests itself as understeer - when the vehicle slides towards
the outside of the bend despite the wheels being turned in the opposite
direction - or oversteer, when the vehicle's tail swerves out. The electronic
stabilisation program's computer unit uses the data supplied by the network
of sensors to determine the nature of the vehicle's instability and governs
the corrective response by intervening in the braking and engine
management systems. If the vehicle is understeering, the electronic
stabilisation program decelerates the rear wheel on the inside of the bend.
At the same time, it reduces engine power until stability has been restored.
The electronic stabilisation program counters oversteer by carefully applying
the front brake on the outside of the bend and intervening in the engine and
transmission management. This complex control system is subject to
ongoing advancement as more and more experience with it is gained and
sensors are developed which offer far greater sensitivity. Note: The
electronic stabilisation program is unable to override the limits imposed by
the laws of physics. If the driver pushes both the chassis and the electronic
stabilisation program beyond their limit, not even ESP will be able to prevent
an accident.
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