Volkswagen plans to spend INR15bn (US$249m) in India over the next 5-6 years, to expand capacity at its Chakhan plant in Pune, according to local reports.

Speaking at the launch of the revamped Polo model, Volkswagen India’s managing director Mahesh Kodumudi said the company is considering increasing annual production capacity to 200,000 units, from the current 130,000 units, and will likely also build an engine assembly plant at the site.

The Chakan plant was completed in 2007 and currently employs around 3,500 people.