Report – VW India considers assembling engines, localizing powertrains

Shrawan

Shrawan Raja, I'm the Founder & CEO of IndianAutosBlog.com. I love teamwork and talking about cars.

Volkswagen India is considering assembling certain engines and locally sourcing some key components from local vendors, and a decision on the localization scope expansion is close to being made, say reports.

VW India President and Managing Director, Mahesh Kodumudi says the localization of products currently is 70 percent and the aim is to increase it to 90 percent. Reaching 90 percent would not come without localizing engines and gearboxes.

VW Jetta TSI engine bay
Volkswagen could start with the local assembly of the 1.5L four-cylinder diesel engine that replaces all diesel engines on the Polo platform this year.

Volkswagen could start assembly with the 1.5L four-cylinder diesel engine it reportedly plans to adopt across PQ25 platform products, before proceeding to localize it. The new engine will replace the 1.2-liter three-cylinder and the 1.6-liter four-cylinder units employed on the Polo, Vento and Rapid, and possesses the scale factor to justify complete localization.

Volkswagen produced 1 lakh cars from its Chakan plant last year based on the demand in India and abroad. About 30 percent of the production is being exported. Its second plant in Aurangabad that assembles CKD kits from Europe, has a capacity of 89,000 units which it is yet to exhaust.

The localization program is a part of the 100 million Euro investment (INR 800 crore) the company intends to make over the next few years, before the end of the decade. The investment would realize the launch of a sedan, hatchback and an SUV in the B-Segment.

Contribute to IAB
Submit Spyshots & get Bragging rights! Click Here
Custom Mods on your ride? Get it featured on IAB Submit

VW Taigun News & Updates

VW Polo Highline Plus new 16 inch alloy wheels

VW Polo Highline Plus – In 7 Live Images

VW Polo India launch details

MQB based 2017 VW Polo & VW Virtus may come to India after all – Report

2017 VW Polo low-spec variant dashboard

Low-spec variant of the 2017 VW Polo with manual AC spotted in Brazil

2017 VW Polo front exterior

2017 VW Polo production commences

VW Polo with sports body kit and matte blue wrap rear quarter

VW Polo with sports body kit and matte blue wrap – In Images

VW GTI Pete's Tuned front

250 hp VW GTI with Stage 2 Pete’s remap and Miltek exhaust