Volkswagen may set up a facility in Gujarat

Volkswagen recently put on hold its Rs 2,000-crore expansion plan at its facilities in Pune and Aurangabad. The company has been vocal about its protest over the VAT row with the Maharashtra government and this is probably the main reason for the decision. There are now rumours that the German manufacturer is possibly considering of setting up a new car plant in Gujarat.  

A number of senior officials from VW had earlier met a consultancy firm which works for the carmaker in Gujarat. They were shown some locations in the areas of Ahmedabad and Vadodara. While there is no concrete news on the exact investment details, industry sources suggest that it will be a smaller plant than a few of the existing car manufacturing units in Gujarat. However, according to a Volkswagen spokesperson, the company presently is not looking to set up a new car plant in India.