VW to use Skoda's Aurangabad plant to roll out cars by 2007

NEW DELHI: German car major Volkswagon plans to invest Rs 2,400 crore for a production unit in India by 2009, but in the interim period will use the facility of group company Skoda for launching its vehicles from mid-2007.

Skoda's Aurangabad plant will roll out both Skoda and Volkswagon models till the time the proposed manufacturing plant of the German carmaker at Chakan in Maharashtra, becomes operational, sources said.

The Chakan plant is to be built at an investment of Rs 2,400 crore and will have a capacity of 100,000 units, the sources said.

The company is expected to have small cars in its line-up for India and sources say it is also looking to export cars as well. The models likely to be rolled out include the mid-size 'Passat' as well as a variant of the popular 'Beetle'.

The decision to set up a plant near Mumbai, has been taken keeping in mind plans to export cars at a later stage. The proximity to ports in Mumbai would come handy and make export of cars easier, they added.

The company's production plant at Chakan will reportedly have a press shop, body shop, paint shop and assembly line and would be spread over 200 hectares.