In the largest ever recall by any Indian car maker, market leader Maruti Suzuki on Tuesday said it was calling back one lakh A-Star, the company’s flagship export model, to replace a faulty fuel pump gasket.

Volkswagen AG will make India a low-cost manufacturing hub catering to select export markets as Europe’s largest carmaker tries to emulate the success of global rivals Hyundai Motors and Suzuki Motor Corp.

Car sales entered the New Year on a strong note as low interest rates and positive customer sentiment continued to fuel demand for new vehicles. Fear of price hikes following withdrawal of stimulus incentives in the Budget also contributed to higher purchases in January.

The Volkswagen Group has affirmed plans to move to the top spot in the world’s automotive industry ahead of Toyota in another eight years. To achieve these ambitions the Group intends to boost vehicle sales across its lineup of marques by 60 per cent.

BMW always had a way of expressing its sentiments through arts. As it does every year, BMW has chosen internationally acclaimed contemporary artist Jeff Koons as the next in a renowned line of artists who will be creating BMW Art Automobile in what is the 35th anniversary year of the programme.

Automobile major Volvo Auto India plans to ramp-up its dealership network in the country from seven to 12 by end-December, a top company official said. “At present, we are covering seven cities through our dealers and are planning to increase the number of dealers to 12 by end of 2010,” Volvo Auto India Managing Director Paul de Voijs told reporters.