Volkswagen to invest over 1 billion euros in India
Germany Automobile giant Volkswagen Group on Monday officially announced a commitment to invest more than Euro 1 billion (Rs 7,900 crore), as it aims to reboot its India business.
Skoda a subsidiary of Volkswagen, will invest $ 7 billion (Rs 7,900 crore) in India under Skoda Auto. These investments will be put in India between 2019 and 2021. The expansion is expected to generate 4,000-5,000 engineering jobs at the two facilities.
They named the project as India 2.0. As part of a development plan, Skoda Auto will set up a new design and development centre in Pune. This will strengthen Aurangabad and Pune plants.
Here the new sports utility vehicles will be developed on the Volkswagen Flexible Envelope Platform. The vehicle will be on the market by 2020. The group has set a target of garnering 5 per cent stake in India’s passenger vehicle market by 2025.
Volkswagen and Skoda brands together currently have a share of less than 2% in the Indian passenger vehicle market of 3.27 million units a year.
Bernhard Maier, the global CEO of Skoda Auto, said India was set to become the third largest automobile market in the world and there was tremendous potential for the group to grow in India. He admitted that the VW Group had struggled in India to achieve the growth target and said the group was aware of it.
“The VW Group must be ambitious — which is why we have come with India 2.0. We mean business, the proof is in the investment we are making of more than ¤1 billion, in a manufacturing line and local engineering centre. We are going to be developing and producing cars in India with our Indian colleagues for the Indian customers,” CEO Maier said.