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Volkswagen Opens New Plant in Pune, India

Volkswagen has officially opened a new plant in Pune, India on Tuesday in the presence of some 500 international guests. The Pune plant will begin building the Skoda Fabia compact car in May 2009. Production of a hatchback version of the Volkswagen Polo specially developed for the Indian market will be added from 2010.

With a total financial commitment in India amounting to €580 million (US$771 million), the Pune plant represents the largest investment to date by a German company in the country. The facility has a maximum annual production capacity of 110,000 vehicles destined for delivery to the Indian market.

Despite the impact of the financial and economic crisis the desire for individual mobility in India remains high. Experts predict that the Indian automobile market will grow from the present 1.2 million vehicles to more than 2 million vehicles by 2014. The Volkswagen Group has already been building Skoda, Volkswagen and Audi models at its plant in Aurangabad since 2001. In addition to expanding production capacity, the Group is also investing in an efficient Indian supplier industry and in expanding its dealer network across the country.

In 2008, the Volkswagen Group produced 6.347 million vehicles worldwide, some 66.2% (4.201 million) of which were built outside Germany. The Pune plant is the 61st in the worldwide production network of the nine-brand Group.

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