Audi India focus on localisation: decided to assemble the 2.0 TDI in India by the end of this year

Mumbai: Audi India shall begin local assemblies of 2.0 litre diesel engines by end of 2016. This was reported by 2 independent sources. CNBC-TV 18 got news. Volkswagen Group confirmed development. This Volkswagen Group is parent of Skoda and Audi brands. It assembles engines at company’s assembly plants of diesel engines in Chakan near Pune. 2nd phases of plants are inaugurated in 2015 January.

Audi imports currently gearboxes, transmissions and engines that are assembled in India. Sources earlier told that localised assembly engines shall fit onto key Skoda, Volkswagen and Audi models. These models use this engine. It includes Audi A4 and A6 sedans and luxury compact crossover SUV Q5, Volkswagen Passat, Jetta and crossover compact Tiguan TDI and Skoda Octavia, Superb and next generation’s SUV Vision S.

Luxury foreign carmakers have started local assemblies of engines over near past now. This is part of focusing on localised increased levels for bringing prices down. It competes in price sensitive and fierce competitive market of India. Force Motors based in Pune assembles engine for Mercedes Benz and BMW both. This sets up assembly exclusive plants for 2 brands.

As per sources, local assembled engines bring 2 benefits to Audi. 1st is Audi has abilities of paring down customised duty bills by 10 to 30 percent. This reduces costs. 2nd is locally assemblies speeds process of manufacturing.

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