While Phase 1 at the Volkswagen India Chakan plant included delivery of 25 components from 18 local suppliers that went into the making of the 1.5 liter diesel engine, Volkswagen India is now getting ready to enter Phase 2.
Phase 2 involves increased localization wherein the company’s corporate purchase department will be identifying even more local suppliers for sourcing of 15 key parts for the same 1.5 liter diesel engine.
As on date, Volkswagen India sources engine parts from 18 local suppliers who were picked from a host of local suppliers and were part of the company’s bidding process. These suppliers include Sansera Engineering, Honeywell Turbo Technologies India, Rane Engine Valves and Mahabal Group. The parts sourced comprise brackets, turbocharger, flywheels, conrods, oil sumps, vacuum lines, etc, all of which make up the 1.5 liter diesel engine. To localize content even further as the company eyes greater operational profit in India, Phase 2 will involve additional local suppliers.
Volkswagen India Chakan plant, that houses the engine assembly plant is located adjacent to the main car assembly area. The engine plant was inaugurated earlier this year and was built at an investment of INR 240 crores. The total area utilized stands at 3,450 sq mtrs.
The 1.5 liter diesel engine is available in two tunes, offering output of 88 bhp and 103 bhp. It powers cars like VW Polo, VW Vento and Skoda Rapid. The 1.5 liter TDI is installed in over 40% of total cars produced at the Chakan plant for domestic markets. Local assembly reduces need to import these engines (and parts) from Europe, thus reducing overall cost structure as taxes on imported engines involve higher costs.