HYDERABAD, India -- Volkswagen AG will send a team of officials to India's Andhra Pradesh state to sew up a deal to set up an automobile plant, the state's industry minister said Sunday.
"They are expected here in a few weeks to sign a Memorandum of Understanding with the state government," B. Satyanarayana told Reuters in Hyderabad, the capital of the southern state.
VW officials could not be immediately reached for comment.
A bevy of foreign carmakers such as Hyundai Motor Co., Toyota Motor Co., Suzuki Motor Co. and Ford Motor Co. have Indian units to tap growing demand for automobiles in India, which expanded 6.6 percent in the year through the July-September quarter.
VW's proposed plant, which will initially assemble cars from complete knockdown kits, will be set up in the port city of Visakhapatnam on India's eastern coast.
The company had already approved a factory site measuring 250 acres in October, a state official said.