A new Volkswagen engine assembly and testing facility has been set up at it’s Chakan facility which also handles the production of the Polo and Vento. The company will start assembling the 1.5 litre TDI diesel engine, which powers the recently launched facelifted Polo, by the end of 2104.
The local assembly of the engine may help Volkswagen to market the Polo better as the costs of producing the car will certainly reduce. The Volkswagen Polo is one of the most expensive cars in its segment which includes the Hyundai i20, the Maruti Suzuki Swift, the Nissan Micra and the Renault Pulse, and this new move is certainly going to help the company compete better.
The company has invested around Rs. 240 crores in setting up this facility as part of its long term plans to increase localisation. Increasing the extent of localisation will enable the company to reduce prices of it’s vehicles in the market. Mr. Mahesh Kodumudi, Group Chief Representative, Volkswagen Group India and President and Managing Director, Volkswagen India Private Limited said: “Our investment in this state-of-the-art 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. 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 Polo, the Cross Polo and the Polo GT TDI.
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