Volkswagen shall make its engines in India for its domestic and international models. It shall also manufacture range of small cars for the Indian market including Up! and shall also introduce Jetta sedan and Phaeton.
Volkwagen entered India in 2007 and plans to increase its market share in the country. It has already planned to increase its product portfolio in India as a long term strategy. It shall also be manufacturing its engines for luxury cars in India that shall cater to domestic as well as international demands.
The company is also looking at the local vendors to keep the cost of its cars under check. It plans to increase its sales by having competitive costs of its cars, spares as well as services.
The investment strategy involves investments to the core of Rs. 2400 crores which include setting up of its plant in Chakan near Pune. The new plant shall be ready by mid-2009 and shall have an initial capacity of 110,000 units.
Apart from launching its compact car in India, VW shall also launch its luxury cars such as Jetta, Phaeton and its iconic “Beetle”.
