Pune, 19th March 2025: In a landmark announcement, Škoda Auto Volkswagen India Private Limited (SAVWIPL) celebrated a significant milestone with the production of 500,000 locally manufactured engines at its state-of-the-art facility in Chakan, Pune. This achievement underscores the company's commitment to the 'Make in India' initiative and solidifies India's central role in the Volkswagen Group's global manufacturing network.
The Chakan facility began engine production in 2014 and has become a focal point for high-quality vehicle manufacturing. This achievement is made possible through extensive localization efforts, with the MQB A0 IN platform boasting over 95% localization in parts and materials, which allows for significant cost reductions in production and maintenance.
Andreas Dick, Board Member for Production and Logistics at Škoda Auto a.s., commented on the milestone: "Producing 500,000 engines at our Pune facility is a significant milestone, reinforcing India’s role in our global manufacturing network. Our investments in technology and workforce development continue to enhance our production capabilities, ensuring high-quality and cost-effective powertrains." He emphasized the role of India's advanced manufacturing ecosystem and skilled workforce in meeting global demand with quality and efficiency.
Alongside Dick, Piyush Arora, Managing Director & CEO of SAVWIPL, reiterated the company’s commitment to localization and innovation in manufacturing. He stated, "This milestone highlights our commitment to localization and innovation in powertrain manufacturing. Since 2014, we have built a strong foundation, evolving to meet market needs with world-class engines." This emphasis on localization reflects the company’s strategy to reduce costs, improve supply chain reliability, and increase competitiveness in both domestic and international markets.
The production of the popular 1.0 TSI engine, which finds application in models such as the Kushaq, Taigun, Virtus, and Slavia, emphasizes the growing consumer demand for affordable vehicles that blend performance with value. These efforts not only help lower purchase prices but also decrease the overall cost of ownership.
With about 25-30% of the production from the Chakan and Chhatrapati Sambhajinagar facilities earmarked for export, SAVWIPL is strengthening its foothold in global markets, including critical regions such as Latin America and ASEAN. The company operates with the goal of expanding its exports while adhering to the 'Make in India' initiative.
Moreover, the advancement of sustainable practices is evident, with engines like the 1.5 TSI featuring Active Cylinder Technology (ACT), which enhances fuel efficiency and reduces emissions. These innovations are part of Škoda Auto Volkswagen India's broader commitment to environmental responsibilities and cleaner mobility solutions.
While the automotive market in India continues to see heightened competition, SAVWIPL’s strategic investments in manufacturing and localization position it favorably against market leaders. The company has been proactive in enhancing its supply chain logistics and expanding warehouse capabilities to ensure timely availability of parts and better service connectivity. These moves are vital not only for improving the customer experience but also for bolstering the brand's service efficiency.
Additionally, SAVWIPL has been working to increase the number of dealerships and service touchpoints across more cities and towns. This customer-centric approach aims to make vehicle ownership more accessible and to diminish the total cost of maintenance for customers, further enhancing brand loyalty and satisfaction.
In conclusion, Škoda Auto Volkswagen India has positioned itself as a critical player in the Indian automotive landscape by achieving a significant production milestone and continuing to invest in localization and sustainable technologies. As the company looks to the future, it remains committed to both its domestic and global strategies aimed at fostering growth and innovation in the automotive sector.
