Volkswagen India is receiving a EUR100m loan from the European Investment Bank (EIB), the EU’s long-term lending institution.
According to EIB, the financing contract signed in Luxembourg last week will help the company in India.
The project comprises the investment in a new passenger car manufacturing facility in Pune (Maharashtra) for the production of 110,000 units per year of three small, advanced car models, customised for the local market.
The EIB says that the investment thereby contributes to foreign direct investment in India and strengthens the presence of EU manufacturing companies in the region.
Furthermore, the EIB maintains that it will contribute to the introduction of modern, fuel-efficient powertrain technology to India, enabling VW to comply with the gradual tightening of GHG emissions legislation in India.