Volkswagen plans $250 million investment in India

Will also ramp up its plant capacity to 200,000 cars a year from 130,000

German carmaker Volkswagen AG plans to spend Rs 1,500 crore ($250 million) in India over the next five to six years, a senior company executive told reporters on Tuesday.

Mahesh Kodumudi, president and managing director of Volkswagen India Pvt. Ltd., also said the company could increase its India plant capacity to 200,000 cars a year from 130,000.

Volkswagen is evaluating manufacturing engines in India, Kodumudi said.

The company on Tuesday launched a revamped model of its Polo hatchback. Volkswagen's market share in India fell to 2.1% for the fiscal year ended March 31 from 2.46% a year ago, according to data from an industry body.