Wolfsburg, Germany – Volkswagen has officially opened a new plant in Pune, India, which the company said is a “major stepping stone towards achieving its ambitious growth targets on the Indian subcontinent.”
The plant will begin building the Skoda Fabia compact car in May 2009, with a hatchback version of the Volkswagen Polo, specially developed for the Indian market, scheduled to be added from 2010. With a total financial commitment equivalent to €580 million, the Pune plant represents the largest investment to date by a German company in the country.
The facility has a maximum annual production capacity of 110,000 vehicles, destined for delivery to the Indian market. The Volkswagen Group has been building Skoda, Volkswagen and Audi models at its plant in Aurangabad, India since 2001, and is also investing in an efficient Indian supplier industry and in expanding its dealer network across the country. Experts predict that the Indian auto market will grow from the present 1.2 million vehicles to over 2 million by 2014.