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Volkswagen India invests INR 240 cr, creates 260 new jobs

Volkswagen India invests INR 240 cr, creates 260 new jobs

With a view to enhancing localization of models produced at the company’s Pune plant, Volkswagen India has announced investment of 30 million Euros (INR 240 crores) for the production and assembly of 1.5 liter diesel engine. This new engine assembly line will be designed into the current structure of company’s plant in Pune.

Volkswagen India invests INR 240 cr, creates 260 new jobsVolkswagen’s new engine assembly plant at Chakan, Pune will be completed by the end of this year while an engine testing facility is also coming up adjacent to the line. The company will be producing 1.5 liter diesel engines at this plant which will occupy an area of 3,450 sq meters and will be able to assemble over 98,000 engines in a three shift system while working at full capacity. These 1.5 liter engines are already seen doing duty on board the Polo and Polo GT TDI variants. As of now they are imported into the country from Europe, adding to the cost of the car.

The installation of this new state of the art engine assembly line is the company next step in enhancing their commitment to India with added localization of products.

Volkswagen plant in Chakan, Pune commenced with initial investment of 580 million Euros along with an additional investment of 100 million Euros. Localisation content will be increased from 65-70% to about 85-90% over the next few years which will take total investment upto about INR 1500 crores.

This new engine assembly facility at the VW Chakan plant will generate about 260 new jobs besides those created at for suppliers who will be producing and supplying parts and components for this new engine.


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Sagar Patel

Sagar Patel

A first drive in a manual rickety old van was enough to pave the road forward for Sagar Patel. When not driving or riding, his dexterity shifts gear to voice passion through words via reviews, and news, all the while, closely monitoring updates from the auto industry.

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