to invest Rs 1,500 crore in India over the next 6 years on
various activities, including local production of engines, as
it aims to consolidate position in the country.
The company, which today launched an updated version of
its premium hatchback Polo priced between Rs 4.99 lakh and Rs
7.37 lakh (ex-showroom Delhi) intends to invest on enhancing
localisation as well as development of new products.
"India is a strategic market for us and we are looking at
investing here in a systematic manner. Over the period of next
5-6 years we intend to invest Rs 1,500 crore on activities
like enhancing localisation and new products," Volkswagen
India President & MD Mahesh Kodumudi told reporters here.
The company is evaluating making engines in India but
hasn't arrived on a decision yet, he said, adding that
Maharashtra would be the company's first preference for
setting up the engine plant.
Currently, the company imports 100 per cent of the
engines used in its cars in India.
"Currently our localisation levels here are around 65-70
per cent in value terms and going ahead our objective its to
take it to 85-90 per cent. We can achieve it by localising
production of engines and gearbox and we are working on it,"
Kodumudi said.
The company, which has already invested around Rs 4,400
crore in the Indian market since 2007-2008, is now looking to
expand its presence in the market by introducing products in
the growing segments.
"In India, compact sports utility vehicle and compact
sedan segment is growing and we are looking at it. Also, with
the increase in income levels in the country people are also
looking at higher segments as well so that's another area of
interest for us," Volkswagen Passenger Cars Director Michael
Mayer said.
Commenting on the new Polo, Mayer said the launch would
help the company strengthen its position in the compact
hatchback segment in the country.
"If we look at Indian car market, we are not present in
segments which are showing growth. New Polo will allow us to
increase our market share in the compact hatchback segment,"
Mayer added.
The updated Polo with the petrol engines is priced
between Rs 4.99 lakh and Rs 6.07 lakh, while the diesel
variants are priced between Rs 6.27 lakh and Rs 7.37 lakh
(ex-showroom Delhi).
Cross Polo would be available at Rs 7.9 lakh while Polo
GT TDI and Polo GT TSI, which would be launched at August-end
would be priced Rs 7.99 lakh each.
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