VW inaugurates its first engine plant in India – IAB Report

Posted on: Jan 28, 2015 - 12:06pm IST

To manufacture the new 1.5-litre diesel engine.

Volkswagen India has inaugurated an engine assembly plant at its manufacturing facility in Chakan, Pune. Spread over 3,450 square meters, it was made with an investment of 30 million Euros (INR 209 crore) and took 11 months. It will assemble the 1.5-litre TDI diesel engine, which is found in the Polo, Vento, and the Skoda Rapid. It’s currently available in two states of tune – one that makes 90 PS and the other 105 PS.

Volkswagen Engine Assembly Plant Inaugration in Chakan Pune
The new engine assembly plant was inaugurated by Maharashtra’s CM, Mr Devendra Fadnavis.

Announced earlier in August 2014, this, the first engine assembly plant by Volkswagen in India, was made with the help of experts from Germany and Poland. It will also have an engine testing facility with a cold test station, a hot test bench, and an engine dynamometre. A total of 260 direct jobs will be created, and the assembly could be ramped up to produce as many as 98,000 engines annually, in a 3-shift system, says the company.

The plant was inaugurated by Mr Devendra Fadnavis, the Chief Minister of Maharashtra.

With the engine plant, the total investment made by the company in India reaches 710 million Euro (INR 4,946.5 crores). The very same facility, which produces the VW Polo, Vento, and Skoda Rapid had reached a milestone figure last year with a total production of 111,444 cars in 2014.

Volkswagen India Engine Assembly Plant Inaugration in Chakan Pune
The 1.5-litre diesel engine that will be assembled at the new plant currently powers the Polo, the Vento, and the Skoda Rapid.

Also read: Volkswagen Jetta facelift caught on test in India

VW India’s President and Managing Director, Mr. Mahesh Kodumudi mentioned that it’s inline with the government’s ‘Make in India’ initiative, thanks to increased localization.

VW Polo facelift – Image Gallery (Unrelated)

VW Engine Plant – Press Release

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One thought on “VW inaugurates its first engine plant in India – IAB Report

  1. Dr. Nayak says:

    is nothing new other than import tax cheating. This is not a manufacturing
    operation as it involves importing bulk of the expensive components and adding cheap
    non critical parts in India. This will considerably reduce their Import taxes.
    I guess it is better than importing the engine in CBU condition, but will not help
    India in gaining in any new technological advancement. This engine has nothing
    new to offer compared to the diesel engines that are already assembled
    (manufactured) in India by other manufacturers.


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Paranjay Dutt

Likes to read, write, and talk about automobiles whenever he can. The rest of the time, he can be seen behind his camera. Totally fails at writing Author Info, though.