BRUSSELS, Oct 29 (Reuters) - The European Commission launched an in-depth investigation on Thursday into plans by Hungary to provide aid to Audi Hungaria Motor Kft, a subsidiary of the Volkswagen-Porsche Group.
Hungary intends to subsidise the installation of high-tech production lines for new-generation engines and components for a range of cars produced by the German automaker.
The assistance totals 14.9 billion forints ($80 million) in the form of a direct grant and a tax allowance.
The Commission, competition watchdog of the 27-nation European Union, said its preliminary view was that the market share of the Volkswagen-Porsche Group exceeded the limits set under EU guidelines on regional aid.
"When the beneficiary of aid for a large regional investment project has a large market share in some sectors, we have to verify that the beneficiary genuinely needs the aid," EU Competition Commissioner Neelie Kroes said in a statement. (Reporting by Bate Felix; editing by Dale Hudson)