Volkswagen has not yet announced plans to construct 1.2 million vehicles in India.
The company’s chief executive, Matthias Müller, has been reluctant to confirm or deny the company’s plans for the country.
The carmaker’s global CEO, Oliver Blume, has yet to address the issue at a news conference in New York, and did not directly address the reports.
“We’ve not announced any new vehicle production plans yet.
We do not have any specific plans in India yet,” Blume told reporters in New Delhi.
The company has been working on a plan to build its 1.3 million cars in India for about a decade.
But its plan for the new cars was pushed back by a lack of government funding.
In December, the Indian government announced a new tax incentive for automakers, allowing them to build up to 1 million vehicles and employ up to 20,000 people by 2020.