Volkswagen all set to invest in India plant: Der Spiegel
26 August 2006
Frankfurt: German auto major Volkswagen (VW) is planing to invest up to $511.1 million in a plant to be set up in India, as per a report in the Der Spiegel. The magazine said that the firm's supervisory board will arrive at a decision next month, and expects the proposal to be approved.
It also said that a Volkswagen spokesman refused further comment on the move, other than stating that it was known that VW was examining an entry into the Indian market.
Since high customs duties in India make the import of cars less appealing, the proposed plant would serve to make Volkswagen cars more competitive. It would also allow the auto major to capitalise on growing demand in India.