Volkswagen to set up India engine assembly plant by 2015

NEW DELHI Thu Nov 1, 2012 3:29pm IST

The front of a VW bus is seen during the 29th annual ''MaiKaeferTreffen'' (May Beetle meeting) in Hanover, May 1, 2012. REUTERS/Tobias Schwarz/Files

The front of a VW bus is seen during the 29th annual ''MaiKaeferTreffen'' (May Beetle meeting) in Hanover, May 1, 2012.

Credit: Reuters/Tobias Schwarz/Files

Related Topics

Stocks

   

NEW DELHI (Reuters) - Volkswagen AG will build an engine assembly plant in India by 2015, a senior official said on Thursday, as the German automaker looks to boost its lacklustre sales in Asia's third-largest economy.

The company also plans to invest 60 million euros in its India business next year on localisation of components and to boost export potential from the country, said John Chacko, managing director of Volkswagen India.

Volkswagen plans to start exporting vehicles to Taiwan and North Africa from India next year, he said.

Volkswagen, like many other overseas carmakers, has struggled to fully leverage its global clout since entering India, and has failed to win significant market share from long-term incumbents such as Maruti Suzuki (MRTI.NS) and Tata Motors (TAMO.NS). (Reporting by Henry Foy; Editing by Subhranshu Sahu)

FILED UNDER:

Religion and Politics

REUTERS SHOWCASE

Fund Raising

Fund Raising

Flipkart raises $700 million in fresh funding.   Full Article 

Reforms Push

Reforms Push

Modi may order insurance, coal reforms if vote delayed - officials.  Full Article 

Reuters Exclusive

Reuters Exclusive

India looks to sway Americans with nuclear power insurance plan  Full Article 

To Boost Growth

To Boost Growth

Crank up public spending to revive growth - chief economic adviser.   Full Article 

Bold Steps

Bold Steps

SpiceJet rescue plan marks bold bet on Indian aviation recovery.   Full Article 

New Airline

New Airline

Tata, Singapore Air venture Vistara to take off on Jan 9.  Full Article 

Online Sales

Online Sales

Knock knock. Who's there? Amazon's best-selling holiday author.  Full Article 

Hacking Attack

Hacking Attack

N.Korea says did not hack Sony, wants joint probe with U.S.  Full Article 

Reuters Poll

Reuters Poll

BSE Sensex to hit 32,980 by December 2015  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device  Full Coverage