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VW Opens Its First Engine Plant in India

Volkswagen AG has launched production at its first engine making facility in India, a factory in Chakan that can build 98,000 diesel engines per year on three shifts.

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Volkswagen AG has launched production at its first engine making facility in India, a factory in Chakan that can build 98,000 diesel engines per year on three shifts.

The $39 million facility covers 3,500 sq meters (37,800 sq ft). It will make 1.5-liter diesels rated at 89 hp and 104 hp. The engine will be used in locally assembled VW Polo supermini five-door hatches and VW Vento/Skoda Rapid compact five-door hatches.

Diesels for those cars previously were sourced from VW's engine plant in Poland. Local VW India Pvt Ltd. officials say the factory will supply Indian operations exclusively for now but may eventually export engines.

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