German carmaker Volkswagen is planning to invest Rs 1,500 crore on new products and enhancing of localisation over the next 6 years. “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,” said Volkswagen India President & MD Mahesh Kodumudi.
When asked about whether the company will set up engine plant, he replied, “The company is evaluating making engines in India but hasn’t arrived on a decision yet. But, 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. Volkswagen has invested around Rs 4,400 crore in Indian market till date and the company now plans to further consolidated its position by expanding 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.
The company on Tuesday launched an updated version of its premium hatchback Polo priced between Rs 4.99 lakh and Rs 7.37 lakh (ex-showroom Delhi). 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.
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. When asked about the company’s stated aim of achieving around 10 per cent market share in India, Kodumudi said: “You have to face reality of the market. It is not growing as forecasted earlier. We remain committed to the market and will try to increase our presence.”