Volkswagen plans India plant

Frankfurt: German carmaker Volkswagen plans to invest up to $511.1 million to set up a plant in India, Der Spiegel magazine reported.

The firm's supervisory board will make a decision on the move at a meeting next month, though it is not expected to be contested, the magazine said.

"As is known, VW is examining entry into the Indian market. We are not commenting on further details," a Volkswagen spokesman said on Saturday.

The plant would enable Volkswagen to capitalise on growing demand in India, where high customs duties make importing cars from Europe less appealing.