Audi India has decided that they will commence local production of their diesel engine. The German luxury carmaker plans on commencing local assembly of its 2.0-litre TDI engine. Local production is expected to begin by 2016-end in the Indian market.
Currently, Audi imports engines, gearbox, and transmissions into India. The units are brought to India via the CKD (Completely Knocked Down) route. All Audi products are assembled in India at Volkswagen's facility in Chakan, Pune.
In an attempt to boost sales in the Indian market for Audi, they will increase local production. The German manufacturer will be able to reduce pricing of their vehicles by approximately 10 to 20 percent. Audi India will also be able to reduce the waiting period across the country.
There are rumours that the all-new locally assembled 2.0-litre TDI engine will be used in other models as well. Audi will utilise the engine in their A4, A6, and Q5 models. Volkswagen and Skoda will also make use of the similar diesel engine.
Mercedes-Benz India currently has the maximum number of locally assembled products in the country. The luxury carmaker has managed to retain its position as the highest selling German manufacturer in India. Currently, they plan on increasing their manufacturing unit to boost domestic sales.