Volkswagen Polo goes into production in India

Volkswagen AG, which recently bought a 19.9% stake in Suzuki Motor, has now started production of the Polo at its plant near Pune. With the Polo, a compact hatchback that will compete against vehicles like the Skoda Fabia, Honda Jazz, Hyundai i20 and Fiat Grande Punto, Volkswagen hopes to make significant inroads into India’s growing car market.

VW, which has invested close to US$850 million at its plant in Chakan, near Pune, currently has a capacity of producing 110,000 cars in India per annum. With three VW Group brands – Audi, Skoda and VW – present in India, all of which will be launching various new cars in India in the near future, the German manufacturer is aiming to garner a major chunk of the car market here over the next few years.

Volkswagen is aiming for a high degree of localisation in its cars made in India, to keep prices in check. However, prices for the India-spec VW Polo are likely to be revealed only next month, when the car is shown at the Auto Expo, in Delhi.