VW starts diesel engine assembly plant at Chakan

Volkswagen Group India on Tuesday launched its first engine plant in the country which will assemble 1.5-litre diesel engines for two VW models as well as for the group arm Skoda’s Rapid sedan.

The Rs 240-crore powertrain plant at its Chakan facility near here is spread over 3,500 sqmt and can produce 98,000 engines per annum in three shifts, all Bharat Stage III compliant. The company will use the new power trains from the new facility for the models Polo, Vento and Rapid.

The plant was inaugurated by the Maharashtra Chief Minister Devendra Fadnavis on Tuesday. Fadnavis asked the company to make Maharashtra its global export hub and assured that his government will further reduce the existing 25 levels of approval needed to start a business. The labour laws in the state were “anti-labour and anti-industry and only time killing”, the 

Chief Minister said, adding that they would be revamped soon.

Among the five Volkswagen group companies together selling 25 models in the country, Audi is the largest in terms of volume and offerings.