In order to strengthen their position in the Indian auto industry, Volkswagen had announced investment of INR 1,500 crore at the start of 2014. The first part of this investment saw them built their engine assembly plant, while the second part of the investment will now be utilized in building a new compact sedan.
Not named officially, VW India refers to this new car as New Volkswagen Compact Sedan. Based on the same platform as the Polo and Vento, but modified a bit to suit the under 4 meter norms; Volkswagen reveals that a total of INR 720 crore (€102.5 million or $108.5 million) has been invested to built this new sedan.
Speaking more about the new sedan, Volkswagen India says that the car has been specifically designed and developed for India. Though it has been developed for India, we also expect that VW India will export this new sedan to other markets across the globe. Apart from strengthening their portfolio in the domestic market, this new sedan will also help VW to increase their exports.
Dr. Andreas Lauermann, President and Managing Director, Volkswagen India Private Limited, said: “We are following a long term investment plan in India and with our latest investment we have reaffirmed our confidence in this growing automotive market.”
As you read this, Volkswagen Pune Plant is getting ready for the production of the new model with changes and installation of new equipment at its existing manufacturing facility in Chakan.