Volkswagen India to increase localization of its 1.5 TDI engine

Volkswagen is one of the few companies which seemed to have figured out the Indian market. They know how cost sensitive the consumers are and they have taken a number of steps to deliver quality products at a reasonable price. One of the most major steps in cost improvement is localization. Volkswagen India has taken a huge initiative to localize its diesel engine. The 1.5 liter diesel power plant will get a number of localized components and will be made at its Pune facility.

1.5 TDI Diesel Engine - Volkswagen

Volkswagen`s 1.5 litre TDI diesel engine

The fist phase of localization of the diesel motor has already been carried out successfully. Now Volkswagen India wants to step it up a notch and take it to phase- two. In this phase 15 components of the motor will be sourced from local manufacturers and assembled in the company’s Chakan Plant in Pune. The parts will be sourced from Honeywell Turbo technologies, Rane Engine valves and Mahabal group. These are a few firms from the 18 that were shortlisted in the bidding process.

A total of 25 components for the 1.5 liter diesel motor were sourced from these manufacturers in the first phase. These parts include the turbocharger, flywheel, conrods and oil pumps. Volkswagen India has 2 manufacturing plants, one in Pune and the other in Aurangabad. The Chakan facility required an investment of 240 Crore, and the diesel motor will be made there. This particular engine is available in different states of tune and is used in the Vento, the Rapid and the Polo.