New Delhi: Skoda Auto India on Monday said that its parent Volkswagen Group will invest 1 billion euros in the company's expansion plan for the Indian market, wherein it will develop new products and increase localisation.
According to the company, the investment into the expansion programme -- India 2.0 -- will be made between 2019 and 2021.
It includes creation of an engineering centre, new products, increase in production and further localisation of components.
Earlier, Skoda Auto India was made responsible for leading Volkswagen Group's planned model campaign on the Indian market.
At a press briefing held here, Skoda Auto's Chief Executive Bernhard Maier said: "Experts predict that in the next few years India is going to become the third-largest automotive market worldwide. With our 'India 2.0' project we are now creating the right conditions for sustainable growth there."
"Our objective is ambitious, but achievable: together with the Volkswagen brand, we are seeking a market share of up to five per cent in the long term, depending on market and segment development."
The company elaborated that all models designed and produced locally in India in the future will be based on Volkswagen Group's MQB platform, "which already fulfils the stricter legal requirements for India that come into force in 2020."
"Skoda and Volkswagen will develop several products based on this platform. The model campaign will begin in 2020 with a mid-size SUV," the company said in a statement.
"To ensure that the planned models will fulfil the requirements of Indian customers, Skoda Auto will develop these products at the world-class engineering centre which is part of the India 2.0 project. Within the India 2.0 project, Skoda Auto India plans to gradually create 4,000-5,000 new jobs."