Volkswagen India is planning to introduce a new compact sedan for Indian market with an investment of Rs 720 crore. The car will be manufactured at its Chakan plant and is scheduled in first half of 2016.
With this, Volkswagen will add a new model to its product portfolio. The car is specifically designed and developed for India, company said in a statement. The new models world-premiere is scheduled at the AutoExpo in February 2016.
"We are following a long-term investment plan in India and with our latest investment we have reaffirmed our confidence in this growing automotive market. With our new compact sedan, we will focus intensively on the specific requirements of our Indian customers," said Andreas Lauermann, president and managing director, Volkswagen India.
According to VW India, the investment of Rs 720 crore is towards development, setting up new equipment and ramping up the production of the new compact sedan. This is a part of the VW's Rs 1,500 crore investment announced in the beginning of 2014.
"This is the second step of investment after the Engine Assembly Plant a year ago. Additionally, we will continue to invest further in increasing our productivity and efficiency," Lauermann added. Its Chakan plant is getting ready for the production of the new model with changes and installation of new equipment.
Currently, VW's Chakan plant includes production of the Volkswagen Polo, Volkswagen Vento and Skoda Rapid. The plant has an annual capacity to produce 1.30 lakh cars in two shifts.