Mumbai sources have reported that foreign luxury car makers are planning to step up investments in India as they eye a record sale of high end cars this year despite the mid-year hike in tax that temporarily disrupted volumes. Meanwhile the Volkswagen group is setting up a new engine assembly line in Aurangabad at Skoda Auto’s factory to locally produce 3 litre diesel engines, apart from localizing 2-litre diesel engine in Chakan factory.
Further Audi's rival BMW India is
already exploring the second phase of investment in India has made a strong
comeback over the last two years, say people in the know. Moreover Volvo Auto
India recently started local facility in Bengaluru, Lexus is exploring setting
up an assembly facility and the likes of Mercedes Benz and JLR continue to look
at the assembly of more models and deeper localization.
Auto majors’ plan to increase investment comes at a time when the market
is slated to grow in double digits for the first time in five years with 2017
sales expected to cross the previous high of 36,000 cars in 2015.
