Volkswagen Reported to Be Discussing Production in India

Europe's largest carmaker, Volkswagen AG, is reported to be visiting Andhra Pradesh to discuss a deal in setting up a VW automobile plant. The state's industry minister stated that "They are expected here in a few weeks to sign a Memorandum of Understanding with the state government."

Volkswagen spokesmen could not be reached for comment on the matter. Several foreign carmakers such as Toyota Motor Co., Hyundai Motor Co., Suzuki Motor Co. and Ford Motor Co. have Indian facilities to address the growing demand for automobiles in India, Asia's fourth largest economy.

The proposed Volkswagen plant, which will initially assemble cars from completely knocked down kits, will be set up in Vishakhapatnam on the eastern coast of India. State officials said Volkswagon had already approved a factory site in October.