The German auto major Volkswagen is aiming to make India a low cost manufacturing hub.

The company will invest Rs 1,500 crore for localisation and produce cost effective products.

“We are looking at making India a low-cost manufacturing hub catering to emerging and developed export markets. In 2014, we exported 65,000 cars which is 60 per cent of our production from the Chakan plant,” Volkswagen India chief representative Mahesh Kodumudi said.

“We are looking to export 70,000 cars this year,” he said. In next two years the company will also increase the production capacity at Chakan and Aurangabad units.

“India is and will remain an important strategic growth market for the Volkswagen Group. We are convinced that VW will take on a key role in the Indian automobile market in the long-term. We are driving localisation forward with our new engine assembly plant in Pune”, Volkswagen AG chief executive Martin Winterkorn said.