It's no secret that Volkswagen India import their engines. This has lead to VW cars being more expensive than their counterparts. However, this is all set to change. Volkswagen India are now planning to assemble their engines at the Chakan plant. This engine assembly though is limited to the new 1.5TDI. Volkswagen are said to have invested around Rs 240 crore into the setting up of a new parts production and engine assembly line. The company will start operations on the line by the end of this year
The engine assembly line will be spread over an area of 3,450 square metres. At full capacity, the new line can assemble over 98,000 engines over three shifts. Volkswagen's Chakan plant has a press, body, paint and assembly line as of now. It also houses an R&D team. Volkswagen say that with the introduction of engine assembly, more than 260 additional jobs will be created.
Mahesh Kodumudi, group chief representative, Volkswagen Group India and president and managing director, Volkswagen India Private Limited said, "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."
In the future, Volkswagen may also start local assembly of their petrol engines in India.