Volkswagen India planning investments of over Rs 800 crore for new models and more localisation

Car sales in India are steadily picking up momentum and automakers are hard at work to get their chunk of as many new car buyers as possible. As is the standard affair for all global automakers, adding more sales numbers means expanding their existing line-up and ensuring economies of scale by using greater amount of localized parts and component. 

Volkswagen India, for one, has announced that it is planning to invest around 100 million euros (over Rs 800 crore) in the Indian market for the development of new models and expansion of its existing operations. 

"At present, an investment of approximately 100 million euros is in the decision process for new models and for further localisation of parts and components," Volkswagen India President and Managing Director Mahesh Kodumudi has been reported saying. 

Looking to compete better with existing and newer brands like Maruti Suzuki and Datsun respectively, Volkswagen is currently evaluating various spectrums in the budget end of the market. These include compact sedan, compact SUV and compact hatchback segments which are the biggest draws in India at present.    

The company has also made it official that it is close to making final calls on some of these new models and that it will make the necessary announcement at the right time. Commenting on the importance of the Indian market, Mr Kodmudi said, "India remains a key strategic market for the Volkswagen Group and success in this market is important for the Volkswagen Group to achieve a leading position worldwide."