VW eyes Punjab for manufacturing Golf

Andhra may lose out due to controversies.

With its Andhra Pradesh car project mired in controversy, German car maker Volkswagen has set its sights on Punjab to manufacture the Golf, its entry level hatchback.

Punjab Chief Minister Amarinder Singh told Business Standard Volkwagen had held three rounds of discussions with the state government on the issue.

"We have shown the car maker the land that will be made available for its manufacturing site. The company said it will get back in two months time," he said. Industry sources added Volkswagen might manufacture the Golf in Punjab.

As the Volkswagen representative was present at Prime Minister Manmohan Singh's recent meeting with 13 top German CEOs where they pledged large investments in the country, industry sources said this time the possibility of Volkswagen investing in India looked bright.

Volkswagen was earlier planning to invest in Andhra Pradesh. But the project ran into a controversy when it came to light that Rs 10 crore invested by the Andhra Pradesh government had been transferred to a private account.

"The car company representatives had met the Andhra Pradesh government last December but neither the state government nor Volkswagen have been talking on the issue. It may mean that its plan to set up a manufacturing facility in Andhra Pradesh may not materialise," said industry sources.

It was expected that Volkswagen would set up a Rs 5,000 crore car project in Andhra Pradesh three years ago when the state government sent a team to Germany.

Volkswagen, an automobile manufacturer based in Wolfsburg, Germany, forms the core of Volkswagen AG, one of the world's four largest car producers.