Volkswagen Group is looking forward to invest a hefty sum of INR 2000 crore ($379 million) in the Indian subcontinent to strengthen its hold in this part of the world. Majority of the investment will be utilized in building after sales network and to facilitate training.
John Chacko, president and managing director and Volkswagen Group’s chief representative in India confirmed the news on Thursday and said that the total amount is the group investment which will be utilized in this year. Most of the money will be spend on expansion of Aurangabad and Pune facilities and product planning, he added.
Volkswagen will not construct any new plant for the time being and the investment will be aimed at strengthening the after sales network of the German auto maker, Chacko said. On the question of introduction of another small car below Polo or Skoda Fabia, he said company is in talks with the top management and they are analyzing the feasibility of VW Up in the Indian auto market but they haven’t reached a final decision yet.
He further said that a conclusion over its launching is expected to be reached by this year end as introduction of such voluminous products does take time.
Volkswagen AG has been operational in India since last 10 years with its brands like BMW, Audi and Volkswagen doing an excellent job. The parent company’s share have doubled to 3 per cent in 2011 while Audi is showing phenomenal progress by becoming the second largest luxury car maker in India toppling Mercedes Benz from its spot.
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