Volkswagen Group is set to revive its presence in India through a project called India 2.0. The plan will see a one billion euro investment (RM4.76 billion) being pumped into the country between 2019 and 2021.
Skoda will lead the push for the group in India, which is predicted to become the third-largest automotive market worldwide in the next few years. Working together with Volkswagen, the company will develop new models based on the heavily localised MQB A0 platform segment for the Indian market.
Technical development will predominantly take place in the country to ensure market requirements are fulfilled, and a project centre is planned. The first model to appear will be an A0 SUV, which is expected to appear in 2020.
Initially, the focus will be on building vehicles for domestic consumption, but the automaker says a second phase of development will look into the possibility of exporting vehicles that are manufactured in India. The VW Group says it is targeting Skoda and Volkswagen vehicles achieving a combined market share of nearly 5% over the long term.
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VW Group better late than never in India. Suzuki & Mitsubishi are enjoyin immense success here.
Any smart investor including car manufacturer will invest heavily into India as they will be growing exponentially by virtue of having more than 1.2 billion people & probably the 6th largest economy in the world now. That’s smart investment 101.
According to Forbes, in its article titled “India is poised to become the World’s fifth largest economy, but it cant stop there” dated December 20 last year, India will soon overtake the UK to become the 5th largest economy in the world.
Obviously car demand will rise and VW is always planning ahead.