Volkswagen India plant to see initial investment of $530 Million

Volkswagen India plant to see initial investment of $530 Million

Europe’s dominating automaker Volkswagen has confirmed that they would be investing close to USD 530 million to establish a manufacturing unit in India.

The company is to sign up an agreement with the western Maharashtra state and they would be making compact cars at this upcoming facility.

This would also help Volkswagen reduce its dependability on their operations in China where they are facing intense competition from rival automakers.

And the Indian auto market is growing at a fast pace giving the company enough space to grow in the next couple of years.

They are not alone targeting the Indian auto market. World’s largest automaker General Motors has also said that they would be investing more than $300 million to set up a second car factory in the country. Renault is another company, which is entering India in a big way.

The market is currently dominated by Suzuki and they too are investing big to expand their production capabilities.