Volkswagen revs up India investment to Rs 3,500 cr

Bureaus
Posted: 2008-04-04 23:10:07+05:30 IST
Updated: Apr 04, 2008 at 2310 hrs IST

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Volkswagen is raising its investments in India. Earlier, the company had announced an investment of 410 million euros at its plant at Chakan, Pune to manufacture 1,10,000 cars annually. Jorg Mueller, president and MD, Volkswagen Group Sales India Private Limited, said the company will now be investing 580 million euro or Rs 3,500 crore. “This is the biggest investment by a German company,” Mueller said.

The company has also started work on the vendor park that is coming up at its Chakan facility. One third of the land, 575 acres, is being set aside for the park and the company is looking for external developer to invest in creating the infrastructure. Tendering process for this is on. The idea is to lease out the space to vendors, he said.

Mueller, said the plant is ahead of schedule and the company is currently on way to installation of the paint shop and will start production in the first half of 2009. Around 15,000 units of Fabia will be the first to roll out of the plant one year earlier than originally planned. The plant is being built to have flexibility to make an additional car, he said.

Beetle mania or a ride in the UP!

For Beetle fans the dream of upgrading to the New Beetle, will be a reality soon. Joerg Mueller. president and MD of Volkswagen, Group Sales India Private Ltd, said, “We have decided to bring the Beetle here. This will be at the end of the year.” The Beetle will be positioned as a lifestyle model and will be for enthusiasts rather than the mass market. At 13,000 euro, the company does not expect to sell in thousands. Mueller said about 100 would be the kind of numbers they expect. It is actively considering launching the Up! concept car in India. It is a smaller car targeted at the city driver.

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Volkswagen revs up India investment to Rs 3,500 cr

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