The Volkswagen Group is planning to spend an additional US$130m to expand its business in India including the launch of new models and further localisation of parts, Volkswagen India president and managing director Mahesh Kodumudi told reporters.

The investments will be made as needed to support decisions on new models for both the domestic and export markets, he said without giving a specific timeline.

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more

Discover B2B Marketing That Performs

Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.

Find out more

He said the company is considering various options, including a compact saloon specially designed for India, a compact SUV and a compact hatchback, adding that those are the fastest growing and largest segments in the Indian market.

“We are close to making decisions on some of these new models and we will announce at the right time,” he said.

VW – which operates in India through a wholly-owned subsidiary – spent around US$130m in India during 2012-13, after an initial spend of some US$800m on its Pune factory.

Just Auto Excellence Awards - Nominations Closed

Nominations are now closed for the Just Auto Technology Excellence Awards. A big thanks to all the organisations that entered – your response has been outstanding, showcasing exceptional innovation, leadership, and impact.

Excellence in Action
Continental has secured the Window Displays Innovation Award in the 2025 Just Auto Excellence Awards for its Window Projection solution, transforming side windows into dynamic, data-rich canvases. Discover how this compact projection technology and intelligent software are reshaping in-car UX and opening fresh revenue streams for OEMs and mobility providers.

Discover the Impact