Volkswagen Plans To Make India Low Cost Export Hub.

German auto major Volkswagen is planning to make India a low-cost manufacturing hub, catering to both the emerging as well as developed markets. 

Company will be investing Rs 1,500 crore for localization and production of cost effective products.

The group, which had put on hold investments and new product launches due to uncertain economic conditions in the Indian market, said it was looking at investing Rs 1,500 crore over the next five years to set up a diesel engine manufacturing facility.

Volkswagen is looking at making India a low-cost manufacturing hub catering to emerging and developed export markets. As per reports in 2014, Volkswagen exported 65,000 cars which is 60 per cent of its production from the Chakan plant.

The company will also increase production capacity at the Chakan and Aurangabad units in the next two years. 

Mahesh Kodumudi, president and managing director of Volkswagen India, also said the company could increase output in India to 200,000 cars a year from the current 130,000.

Volkswagen builds Audi, Skoda and Volkswagen models at two plants in Aurangabad and Pune and as part of an expansion, the automaker is evaluating manufacturing engines in India.