Volkswagen India has invested 30 million Euro (Rs. 240 crore) for setting up a new diesel engine assembly line and an engine testing facility at its plant at Chakan, near Pune. The company is scheduled to begin assembly of a 1.5-litre TDI diesel engine, which has been specifically designed and developed for the Indian market, at the plant from the end of 2014. The engine has been seen in the recently launched Polo facelift.
The new engine assembly line will be integrated into the existing structure of plant and will cover a total floor space of 3,450 square metres. It will have the capacity to assemble more than 98,000 engines in a three-shift-system. Volkswagen says that the introduction of the new line will create more than 260 jobs in the plant alone.
The assembly of engines in India will help the company to increase the level of localisation of its models, which in turn will enable it to price them more competitively.