Wednesday, July 16, 2014
By Kamal Swami
Volkswagen will invest Rs. 1500 crore for development in Indian car market
German auto giant Volkswagen has said that it will make an investment of Rs. 1500 crore in India car market for upgrading its production facility and other necessities in Indian car market. This announcement from company sources was made yesterday during the launch of all new Volkswagen Polo hatchback at New Delhi. At present company’s total share in Indian car market counts about two percent. The car maker made its debut in India with Skoda in 2001 after which in 2009 it separated itself from its Czech alliance and established its independent unit in 2009.
Now after five years of successful independent existence in Indian car market the group intends to strengthen its position. It stands at third position in global car market and wish to reach at the top position by 2018 for which it is necessary for company to explore its operations in developing countries. In the words of Mr. Mahesh Kodmudi, India President Volkswagen group, company has vast potential of growth in Indian car market and therefore company would be investing about Rs. 15 billion in India during next five to six years.
The production line-up of company at present in Indian car market apart from newly launched Polo includes Jetta, Passat, Vento and Beetle. It would be interested that among all these vehicles only Polo has succeeded in enjoying the expected success while the others have not gained much popularity. But now it seems that company is determined to strengthen its position in India by bringing innovative products enriched with latest technical features and technology.