Volkswagen has been a strong brand in the Indian market. The international car-making brand has earned the reputation of delivering cars with uncompromising quality and safety features. Recently, Volkswagen has launched the upgraded version of Polo hatchback with fresh cosmetic upgrades. As per a new update, Volkswagen India has been planning on investing about Rs. 240 crores for setting up a new diesel engine plant at Pune's Chakan facility.
The new assembly line due to begin by this year end, shall be used for manufacturing 1.5-litre TDI diesel engine. The plant shall also be well equipped to have complete engine testing facility systems in place. The new assembly line shall hold a capacity to build over 98,000 engines in full capacity three-shift-system. The new localization system shall aid the company in bringing down the overall cost of production which will in-turn benefit the buyers in the country.
Speaking more on the development, Mahesh Kodumudi, Chief representative, Volkswagen Group India, and President and MD of Volkswagen India Private said, “On the cost side, we have been working on rationalizing the cost and increasing the level of localization. Not only the breadth or number of parts we are locally producing but also depth of localization. Our target is to achieve 90%.”
The new Chakan assembly line is spread over 3,450 square metre and is capable of creating jobs for about 260 people in India. The plant shall be useful especially for the new 1.5 Liter TDI diesel engine that shall be used in the recently launched Polo diesel.
