Volkswagen Group to invest 1 billion for new models

Volkswagen Group to invest 1 billion for new models

Volkswagen Group to invest 1 billion for new models

Germany's Volkswagen Group plans to invest around 1 billion (over Rs 7,800 crore) in India over the next few years to develop six new models.

Czech carmaker Skoda is driving the emerging market strategy for the VW Group and is leading the development process for new models in India, which are expected to be rolled out post 2020, when new regulations related to safety and emissions come into force in the country.

The proposed six new models, three each under Skoda and Volkswagen brands, would cater mainly to the domestic market.

If successful in India, the group may also look at exporting these to some of the select markets abroad. The new products would be developed on Volkswagen's MQB-A0 platform.

When contacted, Skoda Auto India Director (Sales, Service and Marketing) Ashutosh Dixit said that the company is working on VW's MQB-A0 platform, but declined to share investment details and new product launch timelines.

Industry sources, however, confirmed that the group has lined up €1 billion euros investment in India for various activities, including plans to set up an engineering and development centre, expand production facility at Chakan and to develop new models.

Last year, Skoda CEO Bernhard Maier had said that the launch of the first products based on localised MQB A0 platform in India will coincide with the changing regulations in 2020.

Skoda has taken over the development of affordable products for the VW Group, as its deal with Tata Motors for joint development of products failed to take off.