European auto major Skoda Auto Volkswagen India has achieved a new milestone in its India journey. The company recently rolled out the 500,000^th Made-in-India engine from its Chakan facility in Maharashtra.

The facility currently has a manufacturing capacity of around 189,000 vehicles per annum. It manufactures vehicles for both Skoda and Volkswagen brands in India and also plays a key role in the Volkswagen Group’s export strategy. The company has invested significantly towards localising the TSI technology for the Indian market.

Andreas Dick, Skoda Auto Board Member for Production and Logistics, said, "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. India’s advanced manufacturing ecosystem and skilled workforce play a vital role in meeting global demand with high-quality, efficient powertrain solutions. This milestone reinforces our confidence in India’s ability to support Group’s international operations and future growth."

Piyush Arora, Managing Director & CEO, Skoda Auto Volkswagen India, added, "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. The high-degree of localisation in our made-in-India engines showcases the Groups focus on domestic sourcing and contribution to strengthen the Indian automotive manufacturing and supply ecosystem. We will continue to invest in expanding our capabilities and strengthening India’s position as a hub for world-class automotive manufacturing."

Volkswagen Group has been present in India since 2001 and is currently represented by five brands – Skoda, Volkswagen, Audi, Porsche and Lamborghini – in the country. The OEM is optimistic about the India growth story, which can be understood with Volkswagen’s India 2.0 strategy that aims to make the country a global manufacturing hub.

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Electric two-wheeler startup Creatara Mobility has inaugurated its initial production facility in Faridabad, Haryana, featuring an installed annual production capacity of 30,000 units. The facility marks the transition from research and development to assembly for the vehicle startup.

Located in the Delhi-NCR, the plant will produce Creatara's IN40 and VM4 electric two-wheeler models for distribution in domestic and export markets. The e-scooter utilise a proprietary platform incorporating an artificial intelligence-ready Vehicle Control Unit alongside portable, swappable battery packs. The manufacturing facility operates using the Japanese 5S organisational method to standardise production processes across assembly, component testing and battery integration.

Vikas Gupta, Founder and CEO, Creatara Mobility, said, "Creatara’s journey has never been about factories first, but about a vision realised step by step. It began with an idea, evolved into a product, proved its potential and achieved certification. Now, that vision is being industrialised and scaled. The path has been deliberate: Build → Validate → Certify → Industrialise → Scale — each stage strengthening the next."

The company first displayed its vehicle prototypes in January 2025 before securing product certifications and establishing supply chain partnerships. Creatara's business model targets young demographics through vehicle customisation options and distinct body designs across its electric crossover segment.

Ringlarei Pamei, Co-Founder, Creatara Mobility, said, "We have built Creatara with disciplined capital. Our focus has never been to spend our way into scale. It has been to create capability at every stage — technology, product, certification, supply chain and now manufacturing. We believe there is tremendous opportunity for companies that can combine ambition with capital discipline and that is the model we want to build at Creatara."

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Garware Hi-Tech Films (GHFL) and specialty chemicals company Lubrizol have signed a Memorandum of Understanding to collaborate on the development and manufacturing of Thermoplastic Polyurethane (TPU) technology in India.

The agreement establishes a dedicated TPU film extrusion platform designed to expand GHFL's product portfolio across automotive, architectural, industrial and electronics sectors, while providing backward integration for its Paint Protection Film (PPF) business.

As part of the understanding, GHFL is committing an investment of approximately INR 1.18 billion toward the platform, with operational commencement targeted for December 2026. Roughly 25 percent of the total capital outlay will be directed toward research, new product development and technological capabilities.

The partnership involves combining Lubrizol's material science and TPU formulations with GHFL's processing and film manufacturing infrastructure. In-house TPU extrusion will supply inputs for GHFL's PPF manufacturing, supporting an expansion in PPF production capacity to over 60 million square feet (LSF). By manufacturing TPU films locally rather than relying on foreign suppliers, the company expects to enhance supply chain control and support an incremental EBITDA margin expansion of 150 to 200 basis points at a consolidated level.

Monika Garware, Joint MD and Vice-Chairperson, Garware Hi-Tech Films, said, “This association marks a significant milestone in GHFL’s journey towards building a globally competitive, technology-led specialty films business. This collaboration gives us the opportunity to develop new, high-value products across multiple specialty applications, while also strengthening our backward integration in PPF. By combining Lubrizol’s world-class TPU technology with GHFL’s engineering and manufacturing capabilities, we aim to accelerate innovation and build differentiated solutions for the Indian and global markets.”

Deepak Joshi, Director of Sales and Marketing, Garware Hi-Tech Films, said, “GHFL’s INR 1.18 billion investment in advanced TPU film extrusion and manufacturing capabilities is expected to be operational by December 2026, together with the expansion of PPF manufacturing capacity to over 600 LSF, marks a significant step in strengthening our technology-driven, value-added portfolio. This will enable us to develop new TPU-based products across PPF and other specialty applications, while providing greater backward integration for our PPF business. With nearly 25 percent of the investment directed towards new product development and technology capabilities, we see TPU as an important foundation for future innovation, faster commercialisation and incremental EBITDA margin improvement in PPF.”

Abhishek Shrivastava, Vice-President and MD, Lubrizol IMEA, said, “India is emerging as a significant hub for advanced manufacturing, supported by growing domestic demand, strong industrial capabilities and an increasing focus on localisation. At Lubrizol, we are committed to enabling this growth through collaboration, innovation and world-class materials science. Our association with Garware reflects a shared vision of advancing high-performance solutions for the Indian market while contributing to a stronger and more competitive specialty materials ecosystem.”

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European automotive major Stellantis India has acquired the remaining equity stake held by Hindustan Motor Finance Corporation, a CK Birla Group company, in Stellantis Automobiles India. The transaction gives Stellantis complete ownership of the entity and its manufacturing facility located in Thiruvallur, Tamil Nadu.

The acquisition was funded through foreign direct investment and consolidates the manufacturing partnership established between Stellantis and the CK Birla Group in 2017.

The vehicle assembly at the Thiruvallur site began in 2021 and the plant currently produces the Citroen C3, e-C3, C3 Aircross and Basalt models. The company claims a localisation level of over 95 percent in its range.

Stellantis has allocated more than EUR 1 billion (approximately INR 110 billion) toward its Indian operations, covering manufacturing, engineering, supplier development and exports.

The automaker plans to increase annual production at the Thiruvallur facility from 16,000 units in 2026 to more than 43,000 units by 2028. The expansion is projected to increase direct site employment from 610 workers in 2026 to more than double that figure by 2028, alongside additional job creation in local supplier and logistics operations. Vehicles assembled at the plant are distributed domestically and exported to eight international markets across four continents.

Shailesh Hazela, CEO and Managing Director, Stellantis India, said, "India remains a key pillar of Stellantis' growth strategy. Having invested close to INR 110 billion in the country to build a strong manufacturing, engineering and export ecosystem, we continue to see significant opportunities ahead. This milestone will enable greater integration and enhance our ability to respond more quickly to customer and market needs."

"As we look ahead, we are committed to driving growth through new product investments, expanded manufacturing capacity, stronger export competitiveness and deeper localisation. India is playing an increasingly important role within Stellantis' global network, and we see significant potential to further scale our operations and contribution to the country's industrial growth," Hazela added.

The buyout removes the joint venture structure, establishing direct operational control for Stellantis to align Indian manufacturing capacity and export distribution with its central corporate operations.

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German automotive luxury brand Audi has started series production of the all-electric A2 e-tron at its main plant in Ingolstadt, Germany.

Interestingly, the company claims that the development timeline for the A2 e-tron was reduced by 21 months compared to previous vehicle projects through streamlined pre-series evaluation and coordination processes. The EV manufacturing process incorporates structural changes to lower operational complexity.

Audi implemented the string-of-pearls production sequence at Ingolstadt, fixing customer order sequences six days prior to assembly. This system allows component suppliers to deliver pre-sorted parts directly to the assembly line, eliminating regional storage and component sequencing areas.

The body of the A2 e-tron is assembled on shared line infrastructure alongside the Audi A3, utilising more than 1,200 reallocated components and 250 repurposed welding robots. Automated systems include camera-guided bin-picking robots for small sheet-metal parts and fully automated wheel installation stations replacing semi-automated bolting in chassis preassembly.

On the digital infrastructure side, the plant runs the Edge Cloud 4 Production platform, which centralises the control units for vehicle commissioning and operator guidance systems, replacing over 450 industrial PCs in the assembly area.

The facility also uses artificial intelligence assistants, including supply chain and maintenance chatbots, to assist line personnel with fault diagnostics and documentation retrieval.

Gernot Dollner, CEO, Audi AG, said. "The Audi A2 e-tron represents the next step in our renewal. It shows how we consistently think from the market backward, because different regions need different answers. The A2 e-tron was developed for Europe and is manufactured in Ingolstadt. It is the most efficient Audi we have ever built, and it makes electric mobility suitable for everyday use. At the same time, it shows how we are implementing our transformation in concrete terms: developing faster, producing more efficiently, and thereby strengthening industrial value creation and competitiveness in Germany."

Jorg Schlagbauer, Chairman, Audi General Works Council, said, "The start of production of the A2 e-tron in Ingolstadt is a strong signal for our site and its future. We are particularly proud of this as the works council, because together with the workforce we have repeatedly fought with great determination since 2019 for Audi to develop an entry-level electric model and build it in Ingolstadt. The project stands for technological expertise, industrial value creation, and secure prospects for our employees. Above all, however, the successful production launch is the result of the tremendous commitment and skill of our colleagues. Once again, this shows: at Audi, Vorsprung durch Technik is not just announced, it is achieved."

Gerd Walker, Board Member for Production and Logistics, Audi, said, "The A2 e-tron again demonstrates that it is possible to build cars profitably in Germany. Particularly important in this regard are AI assistants developed jointly by our Neckarsulm and Ingolstadt sites, our highly flexible production facilities, and, above all, the expertise of our employees. The model demonstrates the transformation of Audi production: less complex, even more efficient, and with a high degree of digitalisation and automation."

Siegfried Schmidtner, Plant Manager at Audi Ingolstadt, said, "The start of production of the Audi A2 e-tron is the result of extensive teamwork at the Ingolstadt plant. Drawing on their wealth of experience from numerous product launches, the team has laid the groundwork for a successful ramp-up of the model and further optimised our processes. Production of the new model strengthens core capabilities at our headquarters."

The site prepared its workforce for the launch through a multi-stage qualification program combining traditional assembly line instruction with virtual reality training modules.

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