Czech carmaker Škoda, a part of auto conglomerate Volkswagen, today said it has started production of its yet-to-be-launched entry level sedan Rapid from the group's Chakan plant, near Pune.

The company, which is present in India through a wholly owned subsidiary, Skoda Auto India said the Rapid is the first car from the company which has been designed, keeping in mind the special needs of Indian customers and will be exclusively manufactured in India.

"Effective immediately, the first unit of the Skoda Rapid will be rolling off the line in this plant. The car will be introduced in the market shortly...," Skoda Auto Chairman of the Board of Management Winfried Vahland said in a statement.

The Chakan plant, near Pune has been set by Volkswagen, which manufactures models, including the Polo and Vento. It has invested 580 million euros on the plant that has an annual production capacity of 1.1 lakh units.

The start of production of Skoda Rapid is in line with Skoda Auto's 2018 growth strategy, which aims to double sales globally to at least 1.5 million units, the company said.

Skoda Auto India also produces its compact car Fabia from the plant.

The company said the all new Skoda Rapid will be offered in both diesel and petrol engine options. It will be entirely manufactured in India and will be positioned at the entry level mid-sized sedan segment.