The company was about to start its new plant in Greenfield, Pune. Now, with the increasing competition, the company plans to start the plant six months in advance to the expected schedule. With the advancing of this new plant, the roll out of passenger cars will also be advanced.
According to the industry reports, there were speculations that the Singur issues had forced the company to take a step backward but the head of German state of Lower Saxony, Christian Wulff, opposed the speculation. He said reporters that it was a completely isolated issue and has nothing to do with the company’s expansion plan in India.
Volkswagen is investing a sum of 300 million dollars over a 500-acre site at Chakan near Pune. It is expected to start in 2009, giving way to the launch of small cars in the industry. The company also plans to revamp the production capacity of the plant after the start.
Still further, Volkswagen wishes to move ahead with more and more expansion plans to India.