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Volkswagen starts diesel engine assembly plant in India

Despite low sales in India, Volkswagen India today rolled out its diesel engine assembly plant at Chakan near Pune. The plant was built in 11 months with an investment of Rs 240 crore.

The plant spread over 3,450 sq.m will have a capacity to assemble over 98,000 engines annually in a three shift system. The 1.5L TDI engine will be produced for two different power levels – 90 PS and 105 PS peak power.  

Over 260 direct jobs will be created at the new Engine Assembly Plant. Additional employment will also be created at the production locations of Indian suppliers who will supply key parts and components for this engine. The employees working on the engine assembly processes have undergone hands-on training at the Volkswagen Polkowice Engine Plant in Poland as well as through ‘Profi-rooms’ set up at Pune Plant.  

"The new plant including the engine testing facility is our very first in India and emphasizes our commitment to offer technology that is best suited to the requirements of the local market. The 1.5-litre TDI engine was specially developed for the Indian needs and is now being assembled locally too. With this step, we take an important step towards achieving our long term goal of increasing local content. We are also creating more job opportunities and supplier development in and around Chakan,” said Mahesh Kodumudi, chief representative, Volkswagen Group India and president and managing director, Volkswagen India.

Chief minister of Maharashtra Devendra Fadnavis inaugurated the new facility today. This diesel engine has been specifically designed for India and will fulfill the needs of the new Volkswagen Polo, the new Volkswagen Vento and the Skoda Rapid.

"Volkswagen is one of the top car manufacturers in the world and they have brought their German Engineering to India. I hope in future Volkswagen Group can make Maharashtra an export hub for its cars globally", said Fadavnis.  

The latest investment by Volkswagen India in the Chakan Plant takes the company’s total investment to almost 710 million Euro. The manufacturing facility started its operations in March 2009 and has rolled out over 450,000 cars for the Indian market as well as over 32 export markets across three continents.

From Chakan plant, VW has exported over 65000 units to 32 overseas markets of  North America,Africa and Asia.  The domestic and export  sales ratio is 50: 50.