Volkswagen cars in India to get locally made engines soon

Localization and fresh investment are one of the prime targets where Volkswagen India is concerned. This will enable to company to not only achieve competitive pricing but will also ensure that VW India ups its local content from 70% to 85-90% in the future.

Volkswagen TROC Concept at 2014 Geneva Motor ShowLocal assembly of engines and gearboxes is what VW India is targeting, even as the company is taking steps to enhance productivity, optimize cost structure and upgrade sales and after sales networks.

Expecting increase in sales in the future, the company is also ready to meet demand if it rises in the future. As of now they produce about 100,000 cars a year from their plant in Chakan. If they work on full capacity for two shifts, production will be increased to 1.3 lakh units. If they work three shifts, production will increase to 150,000 units. And if there is an even more demand, their plant at current setup can produce 200,000 cars annually with minor adjustments.

VW Group’s Aurangabad plant will also see a boost in operations as the company plans on shifting CKD operations to this plant which has an annual capacity of 89,000 units. VW Group could start local assembly of 1.5 liter four cylinder diesel engines to take the place of all 1.2 liter three cylinder and 1.6 liter four cylinder units on board the Polo, Vento and Rapid.

This expansion and localization plan will see the investment of €100 million or INR 800 crores over the next few years. This added investment will also be directed towards launch of a new compact sedan, hatchback and compact SUV in the B Segment.

Source Economic Times via PTI