Tuesday, 22 May 2012

Volkswagen to setup plant in Gujarat soon?



Has German auto major Volkswagen hit the road to Gujarat? The company, which put on hold its Rs 2,000-crore investment plan in Maharashtra, is exploring possibilities of setting up a car plant in Gujarat.

 A consultancy firm working for the company had met senior officials in Gujarat some time ago and was shown some locations in and around Ahmedabad and Vadodara. While the exact investment is not known, sources close to the development say it will be a smaller plant than some of the existing car factories in Gujarat.

A Volkswagen spokesperson, however, said the company was not looking to set up a new plant in India "as of now." It has put its expansion in Maharashtra on hold due to an unresolved issue over VAT refund. In January, Volkswagen had announced investment in its India operations to ramp up capacity. The group has two manufacturing facilities at Chakan and Aurangabad in Maharashtra.

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