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VW to debut a compact sedan at Auto Expo 2016

Snapshot: Volkswagen India announced its new compact sedan will make its world premiere at the Auto Expo 2016 and making an investment of Rs 720 crore towards the development of the new production unit.

German automaker Volkswagen has announced that its new compact sedan will make a world premiere at the Auto Expo 2016. This new compact sedan has been specifically designed and developed for India and the production is scheduled to commence in the first half of 2016 at Volkswagen’s plant at Chakan, Pune.

The brand is willing to make an investment of Rs 720 crore towards development, new equipment set-up for the production line and increasing the production of the new compact sedan. It is a part of Rs 1500 crore investment that was announced by the German auto major in 2014. With this latest investment, Volkswagen has invested an approximately Rs 5,500 crore in India at the Pune plant since it has started operations in 2007.

In a company statement, Dr. Andreas Lauermann, President and Managing Director, Volkswagen India Private Limited said “We are following a long term investment plan in India and with our latest investment we have reaffirmed our confidence in this growing automotive market”. Dr. Lauermann also added, “This is the second step of investment after the Engine Assembly Plant a year ago. Additionally, we will continue to invest further in increasing our productivity and efficiency.”

This new sedan would take on the likes of Honda Amaze, Swift Dzire, Tata Zest, Hyundai Xcent, and Ford Aspire. Due to sparse in details, we can assume that the sedan is derived from a shorter wheelbase Polo hatchback adding a boot to it. It can be powered with the 1.2-litre MPI and TSI petrol engines, the latter mated with the 7-speed DSG transmission in the top version, and the 1.5-litre diesel engine from its hatchback sibling.

It is rumored, that the brand could name it as “VW Bora”. This “Polo derived sedan” won’t be a cheap one in its segment, as it will be a feature upmarket car and can be priced a little higher than the Honda Amaze.

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