Mumbai, Sept 08, 2007: Volkswagen (VW) has launched the Passat, its first locally assembled model in India. This is the first direct launch by Volkswagen in the country. The company aims at getting a firm footing in the Indian market following the launch.

Passat will be imported in India as CKD and will be assembled at VW’s group company Skoda Auto’s assembly plant in Aurangabad, Maharashtra.  The company spent a long time deciding on the location of its manufacturing plant. There had been a lot of controversy engulfing its plans to set up a unit in Andhra Pradesh. After a couple of abortive attempts to put up a full fledged manufacturing facility in the country VW finally zeroed in on Maharashtra where it plans to invest over Rs 2,200 crore.

 Kevin Rose, executive director of Volkswagen's international sales division said, "Work on our new plant in Pune is in full swing and should be able to be fully ready by 2009-end." The unit will have a capacity to produce 110,000 units annually.

Until the Pune unit comes up, Volkswagen will be assembling Passat at VW group company Skoda’s plant in Aurangabad. The car is likely to be built at its new plant in Pune which is expected to commence operations from 2009. Volkswagen is looking to build the VW brand first followed by raising the localisation content to upto 50-60% before finally moving its manufacturing operations to the new plant.

Skoda Auto India Managing Director Karsten Bogun said, on the sidelines of SIAM Annual Convention, that Volkswagen Passat is already being assembled at Skoda's Aurangabad facility.

VW wants to have a much larger presence in the domestic market.

Volkswagen, makers of the famous car Beetle and Europe's largest car manufacturer, also plans to launch a small car in India and has already started the process of developing it. Jorg Muller, president of Volkswagen India Pvt. Ltd. said, “We want to bring a small car. This is now under development and it is specifically being developed for markets like India.” He said that the pricing would be competitive.