Volkswagen invests Rs 720 crore towards production of new compact sedan in India
Despite being in the eye of a rather smoky storm, Volkswagen will continue with its plans of introducing a new compact sedan for India. Their intention is further confirmed with the company pumping in Rs 720 crore into the production of said vehicle at their Chakan plant in Pune.
The production of the compact sedan, which will benefit from the Government tax subsidy for sub-4m vehicles, is slotted to start from the first half of 2016. The investment will be directed towards product development, installation of new equipment and increasing production of the new Volkswagen.
During the above announcements from VW India, Dr Andreas Lauermann, president and managing director, Volkswagen India Private Limited, said, "We are following a long term investment plan in India and with our latest investment we have reaffirmed our confidence in this growing automotive market. . . This is the second step of investment after the engine assembly plant a year ago. Additionally, we will continue to invest further in increasing our productivity and efficiency."
The new sub-4m sedan from Volkswagen India will be showcased at the 2016 Auto Expo in Delhi. Volkswagen had exclusively told OVERDRIVE that if there is any issue with using the current crop of diesel engines in the compact sedan (read 1.5l diesel), then the company will initially launch the car with only a petrol motor. The launch is expected to take place in the second half of next year.
Volkswagen invests ? 720 crore in its Indian operations;
| New compact sedan to roll out of its Pune Plant in Chakan · Volkswagen strengthens its commitment towards India by investing in an India-specific model · ? 720 crore (approx. 85 Million*) investment in a compact sedan which will be produced at the Volkswagen Pune Plant in Chakan · Dr. Andreas Lauermann, President and Managing Director, Volkswagen India Private Limited, said: "We are following a long term investment plan in India and with our latest investment we have reaffirmed our confidence in this growing automotive market." Pune, November 25, 2015 Volkswagen entered the Indian market with a long term commitment. With the investment in the new compact sedan, which has been specifically designed and developed for India, Volkswagen will add a new model to its product portfolio. The production of the compact sedan at Volkswagen Pune Plant is scheduled to commence in the first half of 2016. India is one of the strategic markets for Volkswagen and the Indian automotive market is expected to be one of the largest by the end of the decade. "We are following a long term investment plan in India and with our latest investment we have reaffirmed our confidence in this growing automotive market", said Dr. Andreas Lauermann, President and Managing Director, Volkswagen India Private Limited. Mr. Michael Mayer, Director, Volkswagen Passenger Cars India added: "With our new compact sedan, we will focus intensively on the specific requirements of our Indian customers." The investment of ? 720 crore (approx. 85 Million*) is towards development, setting up new equipment and ramping up the production of the new compact sedan. This is a part of the ? 1,500 crore (approx. 176 Million*) investment that was announced by Volkswagen India at the beginning of 2014. Dr. Lauermann added, "This is the second step of investment after the Engine Assembly Plant a year ago. Additionally, we will continue to invest further in increasing our productivity and efficiency." Volkswagen Pune Plant is getting ready for the production of the new model with changes and installation of new equipment at its existing manufacturing facility in Chakan. The plant will start producing the new India-specific Volkswagen car from the first half of 2016 and its world-premiere is scheduled at the AutoExpo in February 2016. With the latest investment in the new compact sedan, Volkswagen has now invested approximately ? 5,500 crore (approx. 795 Million*) in India at the Pune Plant since it started its operations in 2007. Currently, about 3,200 employees are working at this manufacturing facility where the Volkswagen Polo, Volkswagen Vento and KODA Rapid are being produced. "With the ramp-up of the new model, we will add more manpower and also create more jobs at our suppliers' end", said Dr. Lauermann. *Currency exchange rate considered at the time of investment About Volkswagen Group India: The Volkswagen Group is represented by five passenger car brands in India: Audi, Lamborghini, Porsche, KODA, and Volkswagen. The Volkswagen Group has been present in India for the last 14 years and began its India journey with the entry of the KODA brand in 2001. The Audi brand and Volkswagen brand entered India in 2007, while Porsche brand and Lamborghini brand followed in 2012. Each brand has its own character and operates as an independent entity in the market. Volkswagen Group India has over 25 models in India, over 240 dealerships and is operating two plants Pune and Aurangabad. The Pune Plant has a manufacturing capacity of 130,000 cars per year (in current two-shift system) and is currently manufacturing Volkswagen Polo and Vento and KODA Rapid. The Aurangabad Plant assembles various premium and luxury models of Audi, KODA and Volkswagen sold in India and has an annual capacity of approximately 89,000. Volkswagen Group India is a part of Volkswagen AG, which is globally represented by 12 brands - Audi, Bentley, Bugatti, Ducati, Lamborghini, Porsche, Scania, SEAT, KODA, Volkswagen Commercial Vehicles (Volkswagen Nutzfahrzeuge), MAN and Volkswagen Passenger Cars. | |
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