Click to play videoNew Delhi: German auto giant Volkswagen is all set to invest half a billion dollars (€410 million) in India—the first ever single largest German investment in the country till date.
In one of the fiercest and most controversial battles for investment, Maharashtra beat 17 locations and 6 states including Andhra Pradesh to win over Volkswagen. The German auto giant unveiled its plans set up a car plant in Pune that will have capacity of producing over 1 lakh units and will employ 2,500 people.
"It’s a customized package taking into account the comfort levels," Maharashtra Chief Minister Vilasrao Deshmukh said.
Volkswagen will start with assembling its car, Passat from early 2007, which will be priced under Rs 30 lakh and will compete with other cars in its segment like Toyota Camry.
Volkswagen will also introduce a small car for India in 2009 on the lines of the Volkswagen Polo, competing with Maruti Suzuki Swift, Hyundai Getz and Tata Indica.
The auto major plans to set up independent sales units in the country by next year to manage car sales.
With sales in Western Europe stagnating and a tough battle with General Motors in China, Volkswagen is hoping to use India as a stress buster.
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