With the investment in the new compact sedan, which has been specifically designed and developed for India, Volkswagen will add a new model to its product portfolio.
The production of the compact sedan at Volkswagen's Pune plant is scheduled to commence in the first half of 2016.
"We are following a long-term investment plan in India and with our latest investment we have reaffirmed our confidence in this growing automotive market," Volkswagen India Pvt Ltd, President and Managing Director, Andreas Lauermann said in a statement.
This is a part of the Rs 1,500 crore investment that was announced by Volkswagen India at the beginning of 2014.
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"This is the second step of investment after the engine assembly plant a year ago. Additionally, we will continue to invest further in increasing our productivity and efficiency," Lauermann said.
The Pune-based plant is getting ready for the production of the new model with changes and installation of new equipment.
The world-premiere of the new sedan is scheduled at the AutoExpo in February 2016.
With the latest investment in the new compact sedan, Volkswagen has now invested around Rs 5,500 crore in India at the Pune plant since it started its operations in 2007.
Currently, about 3,200 employees are working at this manufacturing facility where the Volkswagen Polo, Volkswagen Vento and Skoda Rapid are being produced.
Asked about his views on increasing clampdown on diesel
vehicles, Lauermann said businesses expect certainty and predictability in regulations and laws.
"You cannot shift business in one day or bring out new technologies every now and then. For businesses to succeed, you need stable and predictable laws and regulations," Lauermann told