In line with its strategy to topple Toyota as global carmaking leader, VW intends to raise its market share in India to 20% by 2018 from the current circa-2%.

CEO Martin Winterkorn told Handelsblatt a market share of 20% in India corresponds to sales in the volume of 1m cars per year.

In the first eight months of 2010, VW sold 26,000 vehicles in India, a jump of 125% year on year.

The carmaker built a new plant in Pune at the start of the year and also holds 19.9% in Suzuki, which owns the majority stake in market leader Maruti Suzuki which makes about half of all cars sold in India.

Winterkorn said VW is still considering whether to bring its own Up! small car to Indiamarket or develop a variant of the Polo with Suzuki.