Volkswagen Aims To Invest 1,500 Cr In India In 6 Yrs

NEW DELHI: German carmaker Volkswagen plansto invest 1,500 crore in India over the next 6 years on various activities, including local production of engines, as it aims to consolidate position in the country.

The company has launched an updated version of its premium hatchback Polo priced between 4.99 lakh and 7.37 lakh (ex-showroom Delhi) intends to invest on enhancing localization as well as development of new products.

 "India is a strategic market for us and we are looking at investing here in a systematic manner. Over the period of next 5-6 years we intend to invest 1,500 crore on activities like enhancing localization and new products," Volkswagen India President & MD Mahesh Kodumudi told reporters.

The company is evaluating making engines in India but hasn't arrived on a decision yet, he said, adding that Maharashtra would be the company's first preference for setting up the engine plant.

Currently, the company imports 100 percent of the engines used in its cars in India.

"Currently our localization levels here are around 65-70 per cent in value terms and going ahead our objective its to take it to 85-90 per cent. We can achieve it by localizing production of engines and gearbox and we are working on it," Kodumudi said.

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