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Volkswagen India has invested Rs 240 crore to establish a new diesel engine assembly line and a full-fledged engine testing facility at its plant in Chakan.
The assembly of the new 1.5-litre TDI diesel engine is scheduled to begin here at the end of 2014 and will enable the German automaker to increase the local content in vehicles produced at the plant.
At full capacity, the new line can assemble over 98,000 engines in a three-shift-system. The locally assembled engine will be used in the recently launched new Polo and the Polo GT TDI.
“With this, we take a significant leap towards enhancing our localisation in India,” Mahesh Kodumudi, Group Chief Representative, Volkswagen Group India, and President and Managing Director, Volkswagen India Pvt Ltd, said in a statement.
Over 260 additional direct jobs will be created at the Pune plant alone, in addition to those created at the Indian suppliers who will be producing and supplying parts and components for this engine.
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