Volkswagen looks to score again with Polo, to invest Rs 1,500 cr

Even while launching its updated premium hatchback Polo in the Indian market, Volkswagen plans to invest Rs 1,500 crore in India over the next six years on various activities, including local production of engines, as it aims to consolidate its position.

The Polo has been priced at between Rs 4.99 lakh and Rs 7.37 lakh (ex-showroom Delhi). Volkswagen now intends to invest on enhancing localisation as well as development of new products.

The updated Polo with the petrol engines is priced between Rs 4.99 lakh and Rs 6.07 lakh, while the diesel variants are priced between Rs 6.27 lakh and Rs 7.37 lakh (ex-showroom Delhi).

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.“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,” Volkswagen India President & MD Mahesh Kodumudi said. The company is evaluating making engines in India but hasn’t arrived on a decision yet, he said, adding that 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.

The company, which has already invested around Rs 4,400 crore in the Indian market since 2007-2008, is now looking to expand 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.