German car-maker Volkswagen is planning to invest about Rs.1,500 crore in India over the next five-to-six years.
The investment is intended to improve localisation, and develop new products.
"India is a strategic market for us, and we are looking at investing in a systematic manner. Over the next 5-6 years, we intend to invest Rs.1,500 crore on activities like enhancing localisation and new products," Volkswagen India President and Managing Director Mahesh Kodumudi told reporters here.
The company was also evaluating the option of making engines in India. However, it hadn’t arrived at a decision yet, he said. To a query, he said that Maharashtra would be the company’s first preference for setting up the engine plant. At present, the company imports engines used in its cars in India.
“Our localisation levels here are around 65-70 per cent in value terms. Going ahead, our objective is to take it to 85-90 per cent. We can achieve it by localising production of engines and gearbox, and we are working on it,” Mr. Kodumudi said. “Definitely [the absence of an engine plant] is a handicap in terms of creating a sustainable and profitable business model,” he said.
The company, on Tuesday, launched an updated version of its premium hatchback Polo. The company had already invested around Rs.4,400 crore in the Indian market since 2007-08.
Commenting on the new Polo, Volkswagen Passenger Cars Director Michael Mayer said the launch would help the company strengthen its position in the compact hatchback segment in the country.
“If we look at [the] Indian car market, we are not present in segments which are showing growth. New Polo will allow us to increase our market share in the compact hatchback segment,” he said.
The updated Polo with petrol engine is priced between Rs.4.99 lakh and Rs.6.07 lakh. The diesel variant is priced between Rs.6.27 lakh and Rs.7.37 lakh (ex-showroom Delhi). Cross Polo would be available at Rs.7.9 lakh. Polo GT TDI and Polo GT TSI, to be launched at August-end, would be priced at Rs.7.99 lakh each.
Earlier report:
<a href="https://www.thehindu.com/business/Industry/volkswagen-aims-to-invest-rs-1500-cr-in-india-in-6-years/article6213489.ece">Volkswagen aims to invest Rs. 1,500 cr in India in 6 years</a>
