The Indian auto industry is booming up and it is becoming difficult to satisfy the growing demands. As the power train unit will not be set up now, India is looking for suppliers for engine components for its Greenfield plant at Chakan. Volkswagen- German auto maker has already set up a plant in Chakan, where the small cars will star their production immediately. The plant which is spread across over 230 acres holds the capacity of about 1.1 lakh.

VW would be also looking at assembling engines in the country; however the company would not do any mechanical production but is in talks with suppliers for engine block and cylinder. As per their company policy VW in India plans to locate select eight to ten supplier companies within its premises, in an area designated as an Industrial Park. The company plans to locate it inside the plant itself as it can save transportation costs.

 The company is also holding talks with the government to lay a spur railway line to the Chakan-Taelgaon industrial areas as it will be easier to transport the raw materials by rail rather than road. The other auto majors who will benefit from the railway lines are General Motors, Bajaj Auto-Renault-Nissan, Mahindra International Trucks, JCB, etc. the talks are on, hope things work out faster as this will further progress to our Indian auto industry.