VW Group to invest Rs. 8,000 crore in India

The Volkswagen Group is investing more than Rs. 8,000 crore towards the implementation of the 'India 2.0' project led by Skoda Auto. While the company will initially focus on the India specific platform, it will also be evaluating export of cars manufactured in India at a later stage. 

To develop models suited for the Indian market, Skoda will setup an engineering centre in the country. The project is expected to create 4,000-5,000 new jobs.

Last month, Skoda announced that it would be taking over the responsibility for the Indian market on VW's behalf and will lead all new product development projects for both brands. Skoda will develop the MQB A0-IN platform and new products based on this architecture. The first model will be a mid-size SUV that will be showcased in 2020.

According to Skoda, preparations for the development and production of these new models is already underway. The new cars will comply with the stricter crash regulations that will come into force in 2020. Skoda will also be focusing on reducing costs and production times.