Volkswagen to expand localisation of its 1.5-litre diesel engine

Entering phase two of VW India's engine localisation program, the company's corporate purchase department plans to select a few more local suppliers to source a set of 15 crucial engine components for its 1.5-litre TDI engine.

In phase one of the operations, the company currently sources 25 different high-value components such as turbocharger, connecting rods, vacuum lines, flywheels, engine brackets, oil sumps and others from 18 different local suppliers, of which some are already existing suppliers to the company. To finalise these 18 local vendors, VW India had considered close to 35 different component suppliers in the bidding process.

Some of the suppliers which are already supplying engine parts to VW India are the Bangalore-based Sansera Engineering, Honeywell Turbo Technologies India, Rane Engine Valves and Mahabal Group.

Volkswagen India, has been working to achieve operational profitability through various local developments at its Chakan and Aurangabad facilities, and has invested euro 30 million (approximately Rs 240 crore) in setting up the new engine assembly plant at its Chakan plant. The assembly plant is spread across 3,450 square metres.

Currently, the 1.5-litre diesel powers all three cars manufactured at the VW Pune plant – VW Polo, VW Vento and Skoda Rapid. The engine is available in two power outputs (88bhp and 103bhp).