Volkswagen to increase investment in India to €780 million
Volkswagen India, wholly owned subsidiary of Volkswagen AG is planning to increase investment in India. The German company has already invested about €680 million (approx Rs 5,447 crores), and now are planning to add another €100 million (Rs 801 crores) to their total investment in the near future.
Currently the third largest car maker in the world, after Toyota and General Motors, Volkswagen aims to become the largest car manufacturer by 2018. Considering that India too is on its way to become the largest consumer of passenger cars, Volkswagen is sure that India will play a major role in making them No 1 by 2018.
As of now, Volkswagen is amongst the bottom five car manufacturers in India. As per last year’s sales report, Volkswagen India sold about 52,000 cars in the country, achieving a market share of 1.61%. Their immediate aim is to increase this number to a higher single digit number.
For increasing market share, Volkswagen India has revealed that they plan to launch three new cars. These will be in the form of a compact hatchback (below Polo), compact sedan and a compact SUV. All these cars are expected to be based on the same platform, thereby helping the company to save on development costs.
Volkswagen did not reveal the exact timeline for the launch of these new cars, but they did reveal that they will launch them in a phased manner. Considering that the three segments in which VW is planning to launch their new cars, they will compete with Maruti Swift, Maruti DZire (also Honda Amaze and Hyundai Xcent) and Ford EcoSport.
Source ET Auto via PTI