Volkswagen, a German auto company, will establish a new engine diesel assembly line and full-fledged engine testing facility at its plant located in Chakan, Pune.
The assembly line of the new 1.5-litre TDI diesel engine is scheduled to commence at the end of 2014. Volkswagen India has invested 30 million Euro (Rs 240 crore) in this first step of engine assembly and production of parts and components at suppliers in India.
Mahesh Kodumudi, Group Chief Representative, Volkswagen Group India and President and Managing Director, Volkswagen India said, "Our investment in this engine assembly line is the next step in strengthening our commitment towards India. With this, we take a significant leap towards enhancing our localisation in India."
The new line can assemble over 98,000 engines in a three-shift-system at full capacity. The locally assembled engine will be used in the recently launched new Polo and the Polo GT TDI.