Volkswagen likely to invest over Rs 1,500 crore in India

German car major Volkswagen plans to invest Rs 1,500 crore in India by 2020. The investment could include an engine and transmission manufacturing facility as well as some plant upgrades. "We are maintaining it as a conservative figure," Mahesh Kodumudi, president and managing director, Volkswagen India, told Autocar Professional.

Volkswagen has invested around Rs 4,600 crore thus far in India. 

Volkswagen, which is looking at becoming a significant player in the Indian passenger vehicle market, may invest even more than the "conservative figure" of Rs 1,500 crore towards achieving its growth plans. "If we decide (to add) new models, then it has to be more," added Kodumudi. It is to be noted that Volkswagen is looking at the compact SUV and compact sedan segments for possible entry into them. The carmaker had showcased its small SUV – Taigun – at the Auto Expo 2014 earlier this year to gauge customer response to the vehicle.

Kodumudi was talking on the sidelines of the launch function of the face-lifted Volkswagen Polo hatchback today in New Delhi. The new Polo sees a host of cosmetic updates, a striking new orange colour and an all-new 1.5-litre diesel motor.

On the styling front, the Polo’s front bumper has a new design and a thick chrome strip on the air-dam. The grille uses less chrome and gets a smart single strip instead of three. There are new-design alloys and the headlights and tail-lights get refreshed styling as well, but LED day-time running lights are missing on the updated car. The rear bumper has also been redesigned.

On the inside, the car gets a new three-spoke steering wheel, a two-tone option on the dashboard and silver finishing on the centre console.

The new Polo, equipped with a five-speed manual gearbox, continues to be powered by the existing 1.2-litre and 1.2-litre TSI petrol units but the big news is the all-new 1.5-litre diesel motor available in two states of tune — 89bhp and 104bhp.

Prices for the car start from Rs 4.99 lakh to Rs 6.07 lakh for the 1.2-litre petrol and Rs 6.27 lakh to Rs 7.37 lakh for the 1.5 TDI (ex-Delhi introductory prices).

By end-August, Volkswagen India says it will introduce the new CrossPolo (Rs 7.90 lakh), GT TSI (Rs 7.99 lakh) and GT TDI (Rs 7.99 lakh)

Speaking at the launch of the face-lifted Polo, Michael Mayer, director, Volkswagen Passenger Cars India, said: “Our clear objective is to improve our market position in the next few years.”

Volkswagen India sold 3,079 units in June 2014, down 42.51 percent over sales a year ago. In Q1 (April-June 2014) of the current fiscal, the company has sold 8,769 units, down 41 percent YoY.

Above: Mahesh Kodumudi, Chief Representative Volkswagen Group India and president and MD, Volkswagen India, and Michael Mayer, director, Volkswagen Passenger Cars India, at the launch of the face-lifted Polo in New Delhi today (photograph by Mohammed Shafiq).