German automobile manufacturer Volkswagen has stated that the policies in India need to be consistent in order to attract investments. The company is planning a series of new car launches in India among which is also the small car ‘UP!’. According to Mr. Christian Klingler Volkswagen Group Vice-President Sales and Marketing, the company is willing to increase its investment in India provided the economic and legal situation in India stabilizes.
The company’s statement comes after the Maharashtra government’s decision to change the VAT refund policy. According to the earlier policy, the state government refunded the VAT paid on all the cars sold by the automobile companies with manufacturing facilities in the state. However, the new policy dictates that the VAT would be refunded only on cars sold in the state itself.
Commenting on the investment plans, Mr. Klingler stated that the company is in the launch phase in the Indian market.
