In a move that will aid further localisation, Volkswagen India has inaugurated its first engine assembly plant in Chakan, Pune, within the carmaker's existing premises. Inaugurated by the Maharashtra chief minister Devendra Fadnavis, the unit was set up in a short span of 11 months. Currently, the new engine assembly line has an annual capacity of 98,000 units, manufactured in three shifts.
While the amount of local parts used on the 1.5-litre diesel or the E189 engine is not very high currently - only 29 of the 166 parts are sourced from India right now - the eventual target is a much higher 45 percent. This includes, high value parts like the block, crankshaft and others that will help VW reduce the import content.
Mahesh Kodumudi, Chief Representative, VW group India was quite upbeat. "Today we have shattered the myth that you can't make a VW engine in India", he said.
Mahesh Kodumudi, Chief Representative VW group India
The engine assembly line is the first step in VW's future plan that stresses on 'deeper localisation' of its cars in India. This new engine plant, that also has a full-fledged engine testing facility, and was built with an investment of Rs 240 crore. The 1.5-litre diesel engine currently does duty in the Volkswagen Polo and Vento and the Skoda Rapid sedan. The petrol engines on the other hand, will continue to be imported.
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