Volkswagen to investment $250m in India

Europe's biggest automaker Volkswagen on Tuesday said it would invest US $ 250 million in India over the next six years to capture a larger slice of local sales, in the face of challenging conditions in developed markets. The German powerhouse has been striving to make inroads in India and other emerging economies as markets in developed countries become saturated. ‘India is a strategic market for us,’ Volkswagen India president Mahesh Kodumudi said in New Delhi, adding that over the next 5 to 6 years the company would invest 15 billion rupees ($250 million) in the Asia’s third largest economy. Volkswagen, which holds just over two per cent of the Indian car market, will pour funds into localising production in a bid to cut costs and better compete with rivals. The announcement came as Volkswagen, which entered India in 2001 with the Skoda brand, said in a statement it was launching a newer version of its premium Polo hatchback, priced starting at 499,000 rupees ($8,300), according to AFP.