Volkswagen plans to invest around 100 million Euros (Rs. 800 crore) for the process of expansion of business, localisation of components and introduction of new products. The German auto giant plans to introduce new models in the compact sedan and SUV segment space along with a compact hatchback to further grow in the Indian automotive market. While a timeline has not been decided for the introduction of the new products, Volkswagen did state that it will further make large investments before the end of this decade.
Volkswagen intends to make step-wise decisions and is in the process of considering new products for India as well as export markets. Volkswagen stated that compact vehicles are the fast and the largest growing segments in the Indian market and it needs to be present in this space to see the volumes grow.
Volkswagen is considering a compact sedan that will be specially designed for India, followed by a compact SUV and hatchback. The German automaker is also planning to reintroduce the Passat in the country, while volume models, Vento and Polo will be updated later this year with cosmetic changes and a new 1.5-litre diesel engine. The company also stated that India is a fast growing and strategic market for the Volkswagen Group, which is aiming to achieve the number one spot in the global automotive market by 2018.
India is expected to be one of the biggest automotive markets in the world and Volkswagen wants to be a part of this growth. In terms of market share however, the company is aiming at a high single digit share before the end of this decade. The company currently retails the Polo, Vento, Jetta, Toureg and the Phaeton in the country and does not have a product in the sub-4 lakh volumes segment, while brands like Audi, Porsche, Lamborghini and Skoda are also a part of the Volkswagen Group which employs around 5000 employees across the country.