Auto India, Car India

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Volkswagen AG has provided Rs 3,500 crore to place new plant in the India.
Volkswagen India Pvt. Ltd will open minimum 2-small cars in the Rs 5 lakh segment in country in next 3-4 years.

This is the segment that is seeing a very big growth and we are now working out a small car strategy so that we are present in the fastest growing segment. The car will be under 4m in length.

- Joerg Mueller (president and managing director of Volkswagen India) said.

The company will bring its new 110,000 unit (yearly) plant at Chakan near Pune. The plant will have a flexible assembly line to build cars range from various car models.

They have created some 20,000 units of Skoda’s Fabia model at its Aurangabad plant. They are also planning to produce it from Chakan plant from 2009. The company will be creating a car like the popular Polo model (hatchback in both petrol and diesel editions) from Chakan plant from 2010.

India is a huge strategic market for us and we will work towards having a product in every segment using a mix of imported completely built-ups, assembling here or manufacturing locally. Last year, we made some 6.2 million cars globally, and Indian vendors who fit the quality requirements have the opportunity to be part of our growth in future.

- Mueller said.