Volkswagen has started assembling engines in Chakan.

The INR2.4bn (US$39m) plant, which spans 3,500 sq m, assembles 1.5-litre diesel units.

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PTI said the plant has annual capacity of 98,000 motors used in the locally assembled VW Vento and Polo plus Skoda’s Rapid.

Mahesh Kodumudi, Volkswagen Group India president and managing director, said: “The 1.5-litre TDI engine has been specially developed for the needs of this market and is now being assembled locally. With this step, we take an important step towards achieving our long term goal of increasing local content.”

Until now the company has been sourcing engines from Poland.

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