BANGALORE: Amid persistent volatility in the Indian automobile market, German automobile major Volkswagen will invest over `800 crore (100 mn EUR) into expanding their India business and introducing new models for the market here.
The renewed enthusiasm to invest into the sector could also have bearing with the sweeping victory of the Narendra Modi-led BJP in the Lok Sabha elections and the imminent forming of a new Cabinet that promises ‘less government and more governance’.
The group that owns the luxury and high performance car brands like Audi, Lamborghini, Porsche and Bentley among other brands, will reportedly use the investments to launch of new sedans and compact SUV as well as a hatchback, it was reported.
It had already invested an additional 100 million EUR in 2012-13 to their initial investment of 580 million EUR for setting up their manufacturing plant in Pune in Maharashtra.
“At present, an investment of approximately 100 million EUR is in the decision process for new models and for further localisation of parts and components,” Mahesh Kodumudi, President and MD (India) said. There will be further large investments and decision for further new models for the India and export markets, he said.
“We intend to make these investments step-wise as decisions are realised. In summary, we intend to make these ‘further large investments’ over a period of the next few years before the end of this decade,” agencies quoted Kodumudi.
The company is also looking to bring in the new generation of their premium sedan model, Passat.
On their India specific plans, the company reportedly said, “India is expected to become one of the biggest automotive markets in the world and Volkswagen wants to be a part of this growth.