Volkswagen to invest over Rs.700 crore in India

September 6th, 2012 - 6:37 pm ICT by IANS  

New Delhi, Sep 6 (IANS) German Volkswagen Group Thursday said it will invest €100 million euro (over Rs.700 crore) in its three Indian subsidiaries, including Volkswagen India, Skoda and Audi India, in the next two years.

“We will invest 100 million euro in the entire group in the next two years,” John Chacko, Volkswagen Group’s chief representative for India told reporters here on the sidelines of the annual summit of Society of Indian Automobile Manufacturers (SIAM).

The investments will go into improving production facility in Chakan and Aurangabad near Pune and for making minor changes to the export variant of the company’s sedans.

“The investments will be made in improving our (production) facilities and for minor changes for our export models,” Chacko said.

However, Chacko said that the group has put its investments plans in Maharashtra on hold due to the confusion surrounding various policies of the state government.

“We had planned to invest Rs.2,000 crore that is on hold since lots of policy decisions are confusing. We are still putting pressure on Maharashtra government on various policy issues,” he said.

The company expects sales to rise 10-12 percent in 2012 from the 1.11 lakh units that were sold last year.

Production is also expected to rise 10-15 percent due to various production efficiency measures that were taken.

Chacko said he expects the group’s exports from India will grow. Currently, the group exports sedan Vento to Middle East, southeast Asia and Africa.

Related Stories

Tags: , , , , , , , , , , , , , , , , , , ,

Posted in Business |