The German car giant Volkswagen is designing a smaller version of its fast selling Polo in the Indian market. The company is highly conscious of the growing trend in the compact car segment in which Maruti, Tata, GM and other majors players have a big role. VW is more concerned with the market potential and the brand image in the second largest market, after China, for the small car.
VW’s activities in the Indian soil began at Chakan plant, at an investment of Rs3500 crore for devising its small car Polo. The plant’s annual capacity is 110, 000 units.
Volkswagen (VW) started manufacturing operations in India earlier this year at its Chakan plant, rolling out the compact car Polo [images]. It invested around Rs 3,500 crore on the plant, which has the capacity to produce 110,000 units per annum. The Indian small car segment has 75% share of the net car sales (which is approaching 2 million annual units).