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Today, Volkswagen India starts the pre-series production of its most anticipated mid-segment model, the new Polo, at its Pune plant. The new Minister for Economics, Labour and Transportation of the German Federal State of Lower Saxony, Dr Philipp Rösler, visited the plant at Chakan to give the go ahead for the first welded body of the car.

The Minister together with a delegation of around 30 leading business representatives of the German Federal State, were welcomed by Mr Joerg Mueller, President and Managing Director, Volkswagen Group India; Dr John Chacko, Managing Director Technical, Volkswagen India Private Limited and Mr K K Swamy, Vice President and Managing Director, Volkswagen India Private Limited.

In the presence of Minister Dr Rösler who is also Member of the Supervisory Board of Volkswagen Aktiengesellschaft, and the German Consul General, Walter Stechel, the first finished body of the Polo on the way to the paint shop was given its first sanction. This production is a pre-run to the official production of the Polo that will begin at the plant by the end of this year.

For Volkswagen, the recent inauguration of the Pune plant on 31st March 2009 was a major stepping stone towards achieving its ambitious growth targets on the Indian subcontinent. The Pune plant will begin building the Škoda Fabia compact car in May 2009. Production of a hatchback version of the Volkswagen Polo specially developed for the Indian market will be added from 2010.

With a total financial commitment in India amounting to 580 million euros (3800 crore INR), the Pune plant represents the largest investment to date by a German company in the country. The facility has a maximum annual production capacity of 110,000 vehicles destined for delivery to the Indian market.

The Pune plant is one of the most modern in the Volkswagen Group. It has a high level of vertical integration and a large share of local suppliers. The facility is the only production plant operated by a German automaker in India that covers the entire production process from press shop through body shop and paint shop to final assembly. Volkswagen plans to employ some 2,500 people at the Pune plant by the end of 2010.

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The Volkswagen Polo is now a global car, with versions on sale in Europe, Australia, China, South Africa, and South America. Manufactured in all these locations, too, Volkswagen is to introduce the car to the emerging Indian market in 2010, and opened its plant in Pune on 31 March.

With a maximum annual production capacity of 110,000 vehicles (almost all of which will be for the local market), the new factory complex will play a major role towards achieving the Volkswagen Group’s growth targets on the Indian subcontinent.

The 580 million euro Pune facility will be the Volkswagen Group’s 61st production site, and heralds the largest investment in India by a German company to date. The Škoda Fabia will be the first model to be produced in Pune, adding to the other Audi, Škoda, and Volkswagen models built in VW’s Aurangabad plant.

Production of a specially-developed version of the new Polo for the Indian market will start in 2010, and Volkswagen Group brand communications head, Kurt Rippholz, has reportedly said that two versions will be available – both a hatchback and a saloon. The Polo name has been confirmed for the market, too, further entrenching the model’s heritage.

Exciting times then, for the mainstay of Volkswagen’s small car line-up. With rumours persisting about a debut in the US, and a full roll-out of the new-generation model later in 2009, Volkswagen is clearly pushing to make the Polo even more of a global car.

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