VW inaugurates its first engine plant in India - IAB Report

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.

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.

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 Engine Plant - Press Release