Gujarat is on its way of becoming the automobile manufacturing and assembly capital of India.
Volkswagen is the newest addition to a growing list of carmakers that are either already present in, or looking to move into the State.
The company, which put on hold its Rs 2,000-crore investment plan in Maharashtra, is exploring possibilities of setting up a car plant in Gujarat, the Times of India reports.
A number of senior officials from the German carmaker had earlier met a consultancy company, which works for the carmaker in Gujarat. They were shown some locations in the areas of Ahmedabad and Vadodara. While there is no concrete news on the exact investment details, industry sources suggest that it will be a smaller plant than a few of the existing car-manufacturing units in Gujarat.
While GM and Tata Motors have operational plants in Gujarat, Maruti Suzuki has slotted mega expansion in the State.
Also, PSA Peugeot Citroen and Ford have already been given tax breaks and have signed ‘state support’ agreements.
Volkswagen currently operates from their two plants both situated in Maharashtra one in Chakan near Pune and the other in Aurangabad. These two plants together have a combined capacity of 1.3 lakh units.
The German giant said it has sold 7,000 cars in April 2011, including 6,621 units of Polo and Vento.
Besides Polo and Vento, the other India portfolio cars of the company include premium sedans Volkswagen Jetta and Volkswagen Passat, iconic Volkswagen Beetle and luxury Sports Utility Vehicle (SUV) Volkswagen Touareg.