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- Aug 14, 2026
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Recently, Volkswagen Group confirmed that they will start local assembly of Audi’s 2.0-litre TDI unit at the Chakan factory in Pune. This development comes subsequent to the inauguration of the second phase of the plant in January last year. This 2.0-litre TDI unit is seen on a lot of Volkswagen Group cars including the Audi A4, Skoda Superb, and Volkswagen Jetta among others.
Although Audi is yet to release a statement, an official from Volkswagen confirmed to ZigWheels that the local assembly of the 2.0-litre TDI unit is expected to commence towards the end of the year. Volkswagen will set up a dedicated assembly line, independent from the 1.5.-litre engine, for the local assembly of this engine. Currently though, the German giant imports engines and gearboxes which are then assembled in India.
A lot of luxury car makers have commenced assembling their engines locally. Last year, Force Motors inaugurated its new plant for the assembly of engine for BMW and Mercedes-Benz. This not only helps reduce the cost by around 20 per cent but also increases the production speed.
By bringing in slightly ‘affordable’ cars like the Audi A3, Mercedes-Benz A-Class, luxury car makers are trying to make their brand accessible to a larger audience. This move should help manufacturers keep the costs in check or even offset the impact of the Budget 2016.
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