Audi India had been contemplating local assembly of a few engines in the country from September 2015. And, now it has been learnt that the German luxury automaker has finally made its mind to locally assemble the 2.0L 4-cylinder TDI diesel engine in the country by 2016 end. The aforementioned engine is used in several Volkswagen group vehicles in India such as Audi A4, Audi A6, Volkswagen Passat, Volkswagen Jetta, Skoda Superb, and Skoda Octavia. Also, the upcoming VW Tiguan & Skoda Kodiak would be powered by this engine.
"Volkswagen India plans to start assembling the 2.0 litre engine at the Pune plant towards the end of 2016. There is a single assembly line that will be set up for the new 2.0 litre engine,” said an official spokesperson at Volkswagen. The local assembly of 2.0L TDI engine would benefit the company in several ways like the reduction in waiting period for not only cars but also spare parts. Audi's arch rivals Mercedes-Benz and BMW have been locally developing the engines in India, in a partnership with Force Motors. It has reduced costs and ramped up the production.
Audi still hasn't disclosed the investment amount for the new assembly line. The local assembly would also help the company to reudce the import duty bill by 10-30% and price its cars more aggressively. It would subsequently result in company gaining more margin per vehicle. However, the company would continue to import the gerabox and transmission. Volkswagen Group would launch a plethora of new vehicles and facelifts this year in India, including the new-generation VW Passat, all-new Volkswagen Tiguan, Audi A4 and Skoda Kodiak. For those asking, all the aforementioned vehicles made their India debut at the recently conlcuded 2016 Auto Expo in Greater Noida.
Source: Money Control