Skoda and Volkswagen Open a Joint Manufacturing Plant in Pune,
1st April, 2009
Largest investment by German company to date in Indian growth
market – maximum annual production capacity of 110,000 vehicles
The Governor of Maharashtra State in Western India, Shri. S. C. Jamir, and Prof. Dr. Jochem Heizmann, Member
of the Board of Management of Volkswagen Aktiengesellschaft with responsibility for ‘Group Production’,
officially opened the new Volkswagen Group’s plant in India yesterday in the presence of some 500 guests. For
Volkswagen, the new production facility in Pune is a major stepping stone towards achieving its ambitious growth
targets on the Indian subcontinent.
The Pune plant will begin making the Skoda Fabia 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 euros, 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.
"With the start of production at our new plant in Maharashtra State, the Volkswagen Group has conclusively
arrived on India’s emerging market. Thanks to the local production of Volkswagen and Skoda models in Pune, we
will benefit even more from enormous growth on the Indian automobile market in future," Heizmann said at the
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 over 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.
At the opening ceremony, Jörg Müller, President and Managing Director of Volkswagen Group India, underscored
the significance of the new factory in the Chakan industrial park: "Volkswagen and its cars are already
visible testimony to ‘mobility – made in India’. So I am all the more delighted that our new plant in Pune sends
a clear signal for the further development of our brands in India and for the people in this region."
The Pune plant is one of the most modern in the Volkswagen Group. It has a high level of vertical integration
and a large share of local suppliers. The facility is the only production plant operated by a German car maker in
India that covers the entire production process from press shop through body shop and paint shop to final
Volkswagen plans to employ some 2,500 people at the Pune plant by the end of 2010. The investment agreement to
build the new plant was signed in November 2006 – just over two years before yesterda’s inauguration ceremony.
In 2008, the Volkswagen Group produced 6.347 million vehicles worldwide, some 66.2 per cent (4.201 million) of
which were built outside Germany. The Pune plant is the 61st in the worldwide production network of the
To mark the opening of the new plant, Jörg Müller presented an ambulance to the local hospital in Pune and
announced that Volkswagen India would support a local primary school.