NEW DELHI: German carmaker Volkswagen is increasing its investments in India to euro 580 million (about Rs. 3,600 crore) as it aims to fully exploit the Indian small car market.
“There will be a 41 per cent increase in the investments to India as we intend to start production of Fabia from the Chakan plant,” Volkswagen India Executive Director Finance and CFO Ulrich Proske told PTI. He said the company had raised the level of investment to euro 580 million, against the initially planned euro 410 million.
“This is mainly aimed at meeting the need to locally produce Fabia (from Skoda, a VW group company). By March 2009, we will roll out Fabia from the Chakan plant,” he added.
At present, Fabia is being assembled at Skoda’s Aurangabad facility.
“We have not communicated the increase in the capacity, but the investments are mainly aimed at the need to produce small car Fabia there,” he added.
Fabia has been launched in the Indian market priced in the range of Rs. 4.99 lakh and Rs. 7.68 lakh at the Auto Expo held in January.