5G technology is said to have enhanced the networking connectivity at the facility.

Mahindra has partnered with Airtel to set up India’s first 5G-enabled auto manufacturing plant in Pune.

Airtel, in collaboration with Tech Mahindra, has deployed its 5G enterprise solution at Mahindra’s Chakan plant. The new technology is said to have enhanced the networking connectivity at the facility.

According to the company, thanks to the ultra-low latency and high speed of the 5G network, managers can now undertake multiple software flashing sessions. It is said to improve the turnaround time and speed up the manufacturing process.

Additionally, the AI-based inspection process has now been automated. This is said to have reduced paint defects to 1%, improving overall paint quality.

The company plans to accelerate deliveries of the Skoda Slavia and is gearing up for the launch of the VW Virtus.

Skoda Auto Volkswagen India has ramped up production at its plant at Chakan, near Pune. The factory now operates in three shifts.

According to the company, the demand for models like the Skoda Kushaq and Volkswagen Taigun has been strong. It plans to accelerate deliveries of the Slavia and is also gearing up for the launch of the Volkswagen Virtus in Q2 2022.

Volkswagen recently began exports of the T-Cross to Mexico and plans to start exports of the other India 2.0 models in the coming months. Therefore, with demand expected to grow both on the domestic and export front, the company has decided to start the third shift.

The Skoda Auto VW India plant at Chakan is spread over 540 acres. It houses everything from the body and paint shop to the engine shop and final assembly.

Mahindra has announced that it will make an additional investment of Rs. 500 crore in its Chakan plant. This investment will be utilized in the product development and capacity enhancement for electric vehicles (EV) and their components. 

A memorandum of understanding (MoU) was signed between the Government of Maharashtra and Mahindra during the Magnetic Maharashtra conference in Mumbai.

Mahindra has already announced its expansion plan in Chakan, which includes an initial investment of Rs. 6,500 crore. The additional investment is part of the next phase of its EV expansion plan. In December 2017, had reported that the company has plans to launch three new EVs in India by 2019-20.

Volkswagen invests Rs. 720 crores (~85 million euros) in India, towards the development of its compact sedan. This is a part of the Rs. 1,500 crore investment plan, which VW had announced in 2014 (link to news article).

The investment will also cover installing new equipment and ramping up production in order to accommodate this new compact sedan. As reported earlier, this car is specifically developed for the Indian market and might be called Bora or Derby. It is likely to be powered by the same 1.2L, 3-cylinder petrol and the 1.5L diesel engine from the Polo to enjoy excise benefits. No news about the 1.2 TSI + DSG combo yet!

The world-premiere of this car is scheduled at the 2016 Auto Expo. Its production begins in the first half of 2016. VW have been slow to identify the potential of the compact sedan segment. When launched, this car will compete with the Maruti Dzire, Honda Amaze, Hyundai Xcent, Tata Zest and Ford Figo.

*Image for representation purpose only

In August 2014 we had reported that Volkswagen invested 30 Million Euro (INR 240 crore) in setting up a new engine assembly plant which would also include a full-fledged engine testing facility at Chakan, near Pune.

The hon’ble Chief Minister of Maharashtra - Mr. Devendra Fadnavis today inaugurated this facility. The new engine assembly plant will function over a total floor space of 3,450 sq.m within the premises of the existing plant of Volkswagen India in Chakan.

The engine testing facility includes a cold test station, a hot test bench and an engine dynamometer besides an engine test laboratory. The company will begin assembly of the 1.5-litre TDI diesel engine, which has been specifically designed and developed for the Indian market.

Currently, the Volkswagen Polo, Volkswagen Vento and Skoda Rapid are being manufactured at the Chakan plant.

Mercedes-Benz India is adding an assembly line at its facility in Chakan. The addition of the line will double the plant's capacity to 20,000 units a year. The company has received the necessary environment clearances and is expected to begin production from the extended facility.

For the additional assembly line, Mercedes-Benz is investing Rs. 150 crore. This will take the total investment that the company has made in the plant to Rs. 1,000 crore. The new line will enable the company to start assembly of the CLA sedan, which is scheduled to be launched in India on January 22, 2015.

In 2014, Mercedes-Benz has had a very strong year in terms of sales, recording a growth of 13% over 2013. The company sold a total of 10,201 cars in the country in the January-December 2014 period, which is the highest it has ever managed in a calendar year.

Cars imported as CKD kits and assembled in India attract much lesser taxes and duties compared to those imported as CBUs. This, in turn, helps manufacturers price them more competitively.

Considering the growing demand for its cars and the benefits of assembling cars locally, the new assembly line is expected to help Mercedes-Benz greatly in its expansion plans.

Mercedes-Benz has revealed that it plans to launch 15 models this year, including facelifts and new variants.

Source: Economic Times

Mahindra & Mahindra has announced that it will make an additional investment of Rs. 4,000 crore for the expansion of its plant at Chakan in Maharashtra. This investment will be made over a period of seven years and will take the total amount invested by the company in the plant to Rs. 8,000 crore.

The total amount of Rs. 4,000 crore will be utilized towards the development of infrastructure, development of products and expansion of capacity for vehicles to be rolled out from the Chakan plant.
The Government of Maharashtra has conferred the status of ‘Ultra Mega Project’ to this proposed expansion. Additionally, the company says that there will be further investment by suppliers to cater to its increased requirement.

Mahindra's Chakan plant is spread over 700 acres and has a production capacity of 3.2 million vehicles per year. The plant currently manufactures the company’s entire medium and heavy commercial vehicle range including the 0.75 ton Maxximo, single and double cab Pik-Ups and the whole new range of Mahindra Trucks. The plant also rolls out the XUV500 and the SsangYong Rexton.

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.

Audi India assembles four car models in India, the A4, A6, Q5 and Q7, through the completely knocked down (CKD) route. Soon, the Q3 crossover will join the CKD brigade. The CKD assembly happens at Audi India's Aurangabad assembly unit. Audi, going by its sales performance, is expected to sell over 10,000 luxury cars in India during 2013. The German luxury car maker, according to TheEconomicTimes, is said to be considering full fledged local manufacture of specific high volume cars, in India. 

Cars such as the Q3 crossover and the upcoming 2014 A3 sedan (based on the MQB platform) are speculated to be the top contenders for local manufacturing. Notably, the Volkswagen group's MQB platform could be the big idea around which Audi India's local manufacturing plans are centered around. The Audi A3 sedan, scheduled to hit Indian roads by 2014, is based on the MQB platform, which will be shared by other Volkswagen group cars such as the upcoming 2013 Octavia, and the next generation models of Polo and Vento. 

Since the MQB platform will allow car makers in the Volkswagen group to share parts and production facilities, Audi is said to be conducting a feasibility study to build the A3 sedan at Volkswagen India's Chakan factory. The Chakan facility produces big volume, mass market cars such as the Polo and the Vento. For now, the German luxury car maker is playing down its possible local manufacturing plans, what with Audi India MD Mr Michael Perschke making this statement, 

The current volumes that we have on the current models do not justify a full-blown production, however, the group is looking at different business models. We do a certain level of purchasing together with our affiliates in Chakan. Our board is trying to look at what kind of game plan we should have in the next 5-10 years.

Audi India is said to require volumes of 10,000 units/year from a single luxury car to justify the investment required for that car's local manufacture. Given the fact that Audi's current volumes with all its luxury cars put together is expected to nudge the 10,000 unit/year mark, local manufacture could be a good half decade away.