MUMBAI, India (AP) -- Volkswagen AG started production of its first compact car in India on Saturday, hoping to capture up to 10 percent of the country's fast-growing automobile market within the next six years, the company said.
The Polo, a compact hatchback, rolled off the lines at Volkswagen's factory in Pune, an auto hub a few hours outside Mumbai, shortly before noon. The factory, opened earlier this year, is part of a 580 million euros ($846.8 million) investment, which the company says is a "key element" in its India strategy.
The factory can produce up to 110,000 cars a year, and will be used to manufacture the Skoda Fabia, Polo and a sedan to be launched in the second half of next year, the company said.
It did not reveal the price of the Polo, which has gotten 130,000 orders since its European launch in May.
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