German carmaker Volkswagen will invest $ 1 billion in a plant in Mexico 6,272 crore in Puebla state, Mexico. The plant will produce the Tiguan compact crossover and is expected to generate 2,000 jobs in the region.
The investment is focused on adding new assembly lines and will aid in production numbers. Production of Tiguans will begin in late 2016 and most of it might be exported. The company plans to produce a million vehicles at the plant in a span of eight years which would mainly cater to the North and South American markets.
Volkswagen’s Puebla plant has been functional since 1964 and this would be one of the major investments since then. Last year, the plant rolled out 4,75,121 vehicles and added to the overall tally of 3.2 million vehicles made in Mexico in 2014.