FRANKFURT -- Volkswagen plans to start making VW brand cars in India from next year, German business daily Handelsblatt reported, citing local car-part suppliers for Europe's largest carmaker.
Previously, the company had looked into the construction of a so-called CKD (completely knocked-down) factory, which assembles cars from kits.
In early May, a minister for the Indian state of Andhra Pradesh, Botsa Satyanarayana, said Volkswagen had agreed to build a full manufacturing plant near Vishakhapatnam and would invest roughly $900 million, and said a memorandum of understanding would be signed in 40-45 days.
VW denied this in May, saying no final decision had been taken. No VW spokesman was immediately available on Tuesday.
The newspaper report said, however, that VW is looking at building cars in Aurangabad in Western India, where it already manufactures Skoda cars, instead of near Vishakhapatnam.