Volkswagen is setting up a new diesel engine assembly line and a full-fledged engine testing facility at its plant in Chakan, Pune. This move will further hike the local content in the vehicles made at the plant.
In a statement, Volkswagen said the assembly of the new 1.5-litre TDI engine would commence at the end of 2014. The company said it had invested 30 million euro (Rs.240 crore) in the facility.
The new 1.5-litre TDI diesel engine was specifically designed and developed for the Indian market, and was recently unveiled >at the launch of the new Volkswagen Polo .
“Our investment in this engine assembly line, which incorporates a sophisticated and full-fledged engine testing facility, at our Pune plant in Chakan is the next important step in strengthening our commitment towards India,” Mahesh Kodumudi, President & Managing Director, Volkswagen India, said in a statement. “With this, we take a significant step towards enhancing our localisation in India,” he added.
According to the company, the new line can assemble over 98,000 engines in a three-shift system at full capacity.
The new engine assembly line will be integrated into the existing structure of the Volkswagen plant, and over 260 additional direct jobs will be created in the Pune plant as also jobs at the Indian suppliers who will supply some parts and components for this engine.
