Volkswagen to assemble engines at Chakan plant

Volkswagen India has announced its decision of setting up a new diesel engine assembly line and a full-fledged engine testing facility at its plant in Chakan, Pune. This move will further hike the local content in the vehicles made at the plant. The company will invest Rs 240 crore in this first step of engine assembly and production of parts and components at suppliers in India.

The new 1.5-litre TDI diesel engine was specifically designed and developed for the Indian market, and was recently unveiled at the launch of the new Volkswagen Polo.

Mahesh Kodumudi, Group Chief Representative, Volkswagen Group India and President and Managing Director, Volkswagen India Private Limited said in a statement, “Our investment in this state-of-the-art engine assembly line which incorporates a sophisticated and full-fledged engine testing facility at our Pune Plant in Chakan is the next important step in strengthening our commitment towards India. With this, we take a significant leap towards enhancing our localisation in India.”

According to the company, the new line can assemble over 98,000 engines in a three-shift system at full capacity. With an initial investment of approximately Rs 4,679 crore and an additional investment of Rs 806 crore, the Pune plant is the single largest investment of a German company in India so far.

The facility houses the entire automotive production process, from the press shop, body shop, paint shop and assembly along with an in-house research and development (R&D) facility.