Škoda Auto Volkswagen India Rolls Out 500,000th Engine from Chakan Plant

Škoda Auto Volkswagen India achieved a manufacturing milestone with the production of 500,000 locally-manufactured engines at itsChakan facility in Pune. This achievement underscores the company's commitment to India's 'Make in India' initiative, while strengthening the country's position as a key manufacturing and export hub for the Volkswagen Group, it said in a release. 

The 500,000th engine to roll off the production line was a 1.0 TSI unit. The company has been producing engines at its Chakan facility since 2014. Škoda Auto has placed strong emphasis on localization while maintaining global quality standards and ensuring compliance with stringent emission norms, the company said. 

Speaking on the occasion, Andreas Dick, Škoda Auto a.s. Board Member for Production and Logistics, said, "Our investments in technology and workforce development continue to enhance our production capabilities, ensuring high-quality and cost-effective powertrains," Dick said. He further emphasized that India's advanced manufacturing ecosystem and skilled workforce play a crucial role in meeting global demand.

Piyush Arora, Managing Director & CEO of the company, added that this milestone highlights the company's focus on localization and innovation. "The high-degree of localization in our made-in-India engines showcases the Group's focus on domestic sourcing and contribution to strengthen the Indian automotive manufacturing and supply ecosystem," Arora stated. He reaffirmed the company's commitment to expanding capabilities and enhancing India's position as a hub for world-class automotive manufacturing.

Škoda Auto has been advancing its environmental responsibility through its powertrain technologies. The company's 1.0-liter TSI engine features advanced exhaust emission technology, while the 1.5-liter TSI engine incorporates Active Cylinder Technology (ACT), reinforcing its commitment to cleaner mobility solutions.

Established in India for over two decades, SAVWIPL manages the Indian operations of five brands under the Volkswagen Group umbrella - Škoda, Volkswagen, Audi, Porsche, and Lamborghini. The company operates two manufacturing facilities in India - at Chakan, Pune, and Shendra, Chhatrapati Sambhajinagar (Aurangabad, formerly).

Skoda Volkswagen India has significantly increased its export operations in recent years. Approximately 25-30% of the group's total production from its manufacturing facilities in India is now exported to global markets.

The company's Pune plant serves as a key export hub, sending vehicles primarily to markets in Latin America, Africa, and the ASEAN region. Mexico has emerged as one of the largest export destinations for the group.

In particular, models like the Volkswagen Virtus and T-Cross (sold as Taigun in India) have been prominent export products. The India 2.0 strategy not only revitalized the domestic market approach but also positioned India as an important manufacturing hub within the group's global production network.

This export push aligns with the Indian government's "Make in India" initiative and helps the company achieve better economies of scale for its Indian operations, offsetting some of the challenges in the domestic market where its volume share remains relatively modest compared to market leaders.