Audi to locally assemble 2.0-litre diesel engine in India soon

  • Mar 22, 2016
Volkswagen recently celebrated five years since it first started exporting cars from India and inaugurated the second phase of their Chakan plant in January this year. According to a report no Overdrive, Audi, the subsidiary of Volkswagen Group will start the assembly of the 2.0-litre diesel engine at the VW plant by the end of 2016.
Audi currently imports completely built units of engine, gearbox and transmission into the country which are then planted to the vehicles but with the new engine, Audi will bring in components of the engine and will assemble the engine in India. Sources have said that a new assembly line at Pune plant will be dedicated to the assembly of the 2.0-litre diesel engines. This will in turn bring down the overall cost of a diesel car.

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The 2.0-litre motor is a very versatile engine and cars across the Volkswagen Group that includes Skoda use the 2.0-litre engine in their vehicles. India being a country which is inclined towards diesel more than petrol because of the lower cost of the fuel will benefit largely from the move.
Currently the 2.0-litre diesel engine powers cars like Audi A4, Audi A6, Audi Q5, Volkswagen Passat, Jetta, Skoda Octavia and Superb. It will also power upcoming cars like Volkswagen Tiguan and SUV Vision S.
Many other foreign car manufacturers have started assembling their engines in India and have put immense focus on localization of the parts due to the price-conscious Indian market.
Both the competitors - BMW and Mercedes-Benz already manufacturer engines in India with help of Force motors, who has set-up two different plants for both the German companies.

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Assembling the engines locally will bring down the cost by at least 10 to 30 per cent hence bringing down the final price of the vehicle. Also, locally engines will increase the supply of crucial parts which will help in reduction of waiting period and major service to the vehicles.
Audi runs close to Mercedes-Benz in the sales chart and sold 11,192 units last year as compared to 13,502 units sold by Mercedes-Benz.
It does seems like a good move by the company given the fact that all major competitors have already set-up their manufacturing bases in India.

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