German auto major Volkswagen Group will invest Rs 700 crore over next two years in its three Indian subsidiaries, including Volkswagen India, Skoda Auto and Audi India. The investments will go into improving production facility in Chakan and Aurangabad near Pune and for making minor changes to the export variant of the company's sedans.

Speaking on the sidelines of the annual convention of Society of Indian Automobile Manufacturers (SIAM), Volkswagen Group Chief Representative, India, John Chacko said, "We will invest Rs 700 crore in the entire group in the next two years. The investments will be made in improving our (production) facilities and for minor changes for our export models."

According to him, the group has planned to invest Rs 2,000 crore, which is on hold since lots of policy decisions are confusing. We are however still putting pressure on Maharashtra government on various policy issues.

Volkswagen Group is expecting ten to 12 per cent increase in growth for the current year from 1.11 lakh units sold last year. Chacko said, "Due to various efficiency measures, the group's production level would go up by ten to 12 percent. On exports from India, Volkswagen is exporting mid-sized sedan Vento to South Africa, Malaysia and Middle East, and we are continuously expanding our export markets.