VW to set up diesel engine plant in Pune

European car maker Volkswagen on Tuesday announced the setting up of a state-of-the-art diesel engine assembly and testing facility at its Chakan plant in Pune, with an investment of ₹ 240 crore.

The new engine facility, with an annual capacity of 98,000 units, will become functional by this year-end, Volkswagen said.

The new 1.5-litre TDI diesel engine, designed for the local market, will be made at the plant.