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VW Plans 15% Hike in Production in India

Volkswagen AG says it will add a third shift at its assembly plant in Pune, India, and increase output 15% this year.

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Volkswagen AG says it will add a third shift at its assembly plant in Pune, India, and increase output 15% this year.

The factory, which has capacity to build 130,000 cars per year on two shifts, assembled 123,500 vehicles last year. The new shift is being added as the facility launches the Ameo, a sub-4-meter sedan developed specifically for the Indian market.

The new model was unveiled at the Delhi auto show in February and will go on sale in India in June. The car, a variant of the VW Polo, will be offered with a 1.2-liter, 3-cylinder gasoline engine rated at 74 hp or updated 1.5-liter 4-cylinder diesel that makes 89 hp. Both engines will be available with a 5-speed manual; the diesel also will offer a 7-speed dual-clutch gearbox.

Expected to debut with a starting price of about 550,000 rupees ($8,300), the Ameo will compete in India's crowded small sedan segment, which accounts for about four out of five new-car sales in India.

The Pune factory currently builds the Polo mini-hatch and Vento small sedan and its Skoda brand Rapid sedan.

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