German carmaker Volkswagen has announced that it will invest Rs 1,500 crore (USD 250 million) in India for vehicle upgrades and for hiking the production capacity. The announcement came during the launch of the new VW Polo that gets a model year upgrade and a new diesel engine.
Volkswagen, currently holds a measly market share of two per cent in India. The company entered the Indian market way back in 2001 with the Skoda brand, however, Volkswagen made its entry in 2009. The brand is looking to gain some credibility in our market owing to saturation in the developed countries. The company currently ranks third in the world and to achieve its target of becoming the number one by 2018 they need more penetration in developing countries.
"India is a strategic market for us," Volkswagen India president, Mahesh Kodumudi, said in New Delhi, adding that over the next five to six years the company would invest Rs 15 billion ($250 million) in the country.
Currently, the company sells the Polo, Vento, Jetta, Beetle and the Passat in India. Except the Polo, no other vehicle has made a dent in the sales chart. VW, will hope to change that and for that they need lots of product innovation and strong marketing to back it up. VW has launched the 2014 Polo yesterday and announced the pricing of the complete range. The company will launch the facelifted Vento next in the coming months.