VW invests Rs. 720 crore to develop its compact sedan

Volkswagen invests Rs. 720 crores (~85 million euros) in India, towards the development of its compact sedan. This is a part of the Rs. 1,500 crore investment plan, which VW had announced in 2014 (link to news article).

The investment will also cover installing new equipment and ramping up production in order to accommodate this new compact sedan. As reported earlier, this car is specifically developed for the Indian market and might be called Bora or Derby. It is likely to be powered by the same 1.2L, 3-cylinder petrol and the 1.5L diesel engine from the Polo to enjoy excise benefits. No news about the 1.2 TSI + DSG combo yet!

The world-premiere of this car is scheduled at the 2016 Auto Expo. Its production begins in the first half of 2016. VW have been slow to identify the potential of the compact sedan segment. When launched, this car will compete with the Maruti Dzire, Honda Amaze, Hyundai Xcent, Tata Zest and Ford Figo.

*Image for representation purpose only