Volkswagen Planning New Affordable Premium Cars For India

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With Rs. 7,600 crore investment, Volkswagen prepares for a product assault; planning significant production capacity expansion

Volkswagen is planning a massive Rs. 7,600 crore investment in Indian market to launch more new products here and expand its current production capacity as well. The German auto giant aims to become an affordable premium car brand here and the fresh investment here is going to be a part of that strategy.

As the automaker reveals, it will start a new manufacturing line at its existing production facility in Chakan near Pune. With this new manufacturing line operational, Volkswagen will be able to increase the production volume significantly in India. Apart from domestic market, this production capacity expansion will also help the brand to export more cars to overseas markets, resulting in greater market share in world auto market.

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Volkswagen will also invest to set up a new engineering centre and develop the new products locally that will help the automaker to grab more market stake here in coming years. Apart from the conventional fuel powered cars, the auto major is also targeting to penetrate the electric vehicle market in India that is about to grow significantly in next decade.

Volkswagen has been present in the country market for quite some time, but it could fetch an impressive sales result similar to other car giants like Hyundai, Maruti Suzuki. With local pricing, the brand will be able to price its premium products aggressively, which will surely help it to lure more buyers. Sharing platforms with its subsidiary brand Skoda is also a part of Volkswagen future growth strategy.


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As we have reported several times, Skoda is focusing on the ECO platform for its future cars in Indian market. This new underpinning is basically derived from MQB-A0 platform. Both Skoda and Volkswagen will rely on this architecture to roll out several different models in different segments in domestic market.

Speaking about the production volume expansion, we can see the capacity increasing up to 3.20 lakh units per annum. A large chunk of that will go to overseas markets. The automaker also reveals that MQB-A0 architecture will be fully available for different models by 2023.
Source: ET Auto