VW India responds to ‘Make in India’; installs Engine Manufacturing Plant in Pune
Volkswagen Group India seems to have responded to ‘Make in India’ – an appeal recently made by Mr. Narendra Modi – the Prime Minister of India. The company commissioned its first engine manufacturing plant in Chakan, Pune to assemble the 1.5-litre diesel engines for VW group’s cars. Till now, VW has been sourcing its 1.5-litre engines from its Polish plant.
Maharashtra’s Chief Minister Devendra Fadnavis recently inaugurated the Volkswagen plant. Spread over 3,500 sqmt., the VW engine plant is located at Chakan MIDC near Pune; is built at an estimated cost of Rs. 240 Crore. The manufacturing unit is capable of producing 98,000 BS-IV compliant engines annually in three shifts. The company will fit the 1.5L diesel engine manufactured in this plant in Volkswagen Polo, Volkswagen Vento and Skoda’s Rapid models.
Talking to Economic Times Volkswagen Group India president and managing director Mahesh Kodumudi said, “The 1.5-litre TDI engine has been specially developed for the needs of this market and is now being assembled locally. With this step, we take an important step towards achieving our long term goal of increasing local content.” Kodumudi also indicated that the company was also looking at having a petrol engine facility in the country, but no decision has been taken so far. Localised engine assembly will bring down the cost of engines for VW India. However, Volkswagen India has not yet announced a price revision for the engines made in India.