Volkswagen AG is planning to invest $378 million in India by 2013, as the carmaker wants to expand its production capacity in the fast-growing Asian market.
A significant part of the investment will be used to launch new models and to fund research activities. VW also announced that it will launch its small hatchback Up in the Indian market by somewhere between 2013 and 2014. The German carmaker said that the latest investment will be supplementary to the €580 million it had announced in 2008.
VW group chief representative in India, John Chacko, was quoted as saying by PTI that the company has plans for investing at least 20 billion rupees ($378 million) by 2013, money which will be used by the entire group. “There are huge opportunities to expand in India and this amount will cater to ramping up our production capacity, introducing new models and enhancing our R&D work here,” Chacko said.
The VW Group includes in India the Volkswagen, Audi and Skoda brands. The company has two manufacturing facility at Chakan and Aurangabad in Maharashtra, India.