By Alberto Delclaux 
 

Volkswagen AG (VOW.XE) said Monday that it will invest 1 billion euros ($1.17 billion) to develop new models in India, an effort which will be led by its Skoda unit.

The car maker will set up a project center in the country to carry out development and it expects to showcase its first model, an SUV, in 2020.

"Our objective is ambitious, but achievable: together with the Volkswagen brand, we are seeking a market share of up to five percent in the long term, depending on market and segment development," said Skoda Chief Executive Bernhard Maier.

Technical developments will mostly take place in India, Volkswagen said.

Write to Alberto Delclaux at alberto.delclaux@dowjones.com

(END) Dow Jones Newswires

July 02, 2018 09:27 ET (13:27 GMT)