Audi plans to invest HUF32bn (US$117.6m) in its Gyor plant in Hungary, the country's foreign minister Peter Szijjarto has said.

The project will see the government providing a subsidy of HUF6bn. The project is expected to create 380 jobs, ET reported citing Reuters.

Earlier in October, Audi said it had made about 3m of the diesel engines involved in the Volkswagen's emission scandal at its Hungarian plant, triggering concerns over the outlook for its production in Hungary.