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Volkswagen to Invest INR 720 Crores in India

The German car manufacturer Volkswagen AG said it will launch an India specific compact sedan next year from its Chakan, Pune plant. The Volkswagen made an investment of INR 720 crores in the development of the upcoming model.

This sedan has been exclusively designed and developed for Indian roads. This is a new addition in the gorgeous portfolio of Volkswagen. The production of the compact sedan is scheduled to commence in the first half of 2016 at Volkswagen’s Pune plant.

The President and Managing Director, Volkswagen India Pvt. Ltd, Andreas Lauermann said in a statement that Volkswagen is looking forward for a long-term investment plan in India. With the latest investment the company has reaffirmed its growth in the automotive market.

This investment of INR 720 crores is a part of the INR 1,500 crore investments that were declared by the Volkswagen India at the beginning of year 2014. After the commencement of engine assembly plant a year ago, this is the second step of investment. In addition, the MD said that the Volkswagen will continue to invest further in order to increase the productivity and efficiency.

It is assumed that the Sedan shall come in two variants: Petrol and diesel; of which, diesel engine is presumed to be made locally. Currently, the Pune-based plant is getting ready for the production of the new model with the announced changes and installation of new equipment.

The world premiere of the new sedan is scheduled at the Auto Expo India in February 2016. With the hottest infusion, since 2007, the Volkswagen has invested near about INR 5,500 crore in India. At present, there are about 3,200 employees are working at this unit where the Volkswagen Vento, Volkswagen Polo and Skoda Rapid are being produced.

“With the ramp-up of the new model, we will add more manpower and also create more jobs at our suppliers’ end,” Lauermann added.

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