He added that the company would step up spending on brand promotion activities in the country to meet the mounting competition challenges.

'It is true the Volkswagen brand is not well known in the country. This will be corrected with appropriate branding strategy.'

Volkswagen will bring its popular model 'Beetle' to India as completely built unit.

For the current year, Volkswagen hopes to sell 3,000 units of 'Jetta' and 'Passat', up from 1,566 units sold in 2008.

'We sold 1,900 units during Jan-Aug this year,' Garg said.

While Volkswagen has no major plans to localise the components for these two premium cars, the company will go in for 80 percent local content for its Polo model, Norbert Hoppel, deputy general manager (parts organisation), told IANS.