Expanding its presence and commitment towards India, Volkswagen has established a new diesel engine assembly line and a complete engine testing facility at the Chakan plant, near Pune with an investment of 30 million Euros (Rs. 240 crores). The engine to be assembled in the country is the new India specific 1.5-litre 4-cylinder diesel TDI unit that made its debut on the 2014 Polo facelift last month and will also power other models in Volkswagen’s lineup in the future. The assembly of diesel engines in the country increases the levels of localisation on the German giant’s vehicles produced at the Pune facility.
The new engine assembly line will be integrated into the existing facility of the Volkswagen plant. The line will function over a total floor space of 3450 sq. mt. and can assemble over 98,000 engines at full capacity in a three-shift system. The local engine assembly also creates 260 new jobs at the plant, apart from the additional jobs created at the Indian suppliers who will be producing several components for the powerplant in the country. The new 1.5-litre diesel engine will be plonked under the hood of the facelifted Polo and the Polo GT TDI while deliveries recently commenced for the latter across the country.
With a total investment of 680 million Euros, the Chakan facility is the single largest German company to have made such a large investment in the country so far. The facility is spread across 575 acres of land incorporating a press shop, body shop as well as an R&D centre and produces several vehicles from the Volkswagen Group. Coming to the new 1.5-litre TDI diesel engine, the new engine available in 90 PS and 105 PS of power guise is very vital for the company, as it will also power other models in the Group’s lineup including the Vento sedan and the Skoda Rapid as well. Volkswagen will commence production at the new engine assembly line by the end of the year.