In Kaluga, at the site of the former Volkswagen plant, a joint production facility for automobile engines has been launched. The project was implemented by AGR Holding and the Chinese company Defetoo. The enterprise will supply engines for all car models produced at the partners' joint plants in Russia.
At the first stage, production capacity will amount to 150,000 engines per year, with plans to increase output to 300,000 in the future. The enterprise has already begun mass assembly. Plans include deeper localization and a threefold expansion of production space. In the second half of 2026, the launch of mechanical processing for key engine components is scheduled.
Before the launch, the plant underwent a large-scale modernization. The workshop area totals 32,000 square meters. The assembly line is equipped with nine collaborative robots that perform critically important operations. Production already uses a local component base: parts from Russian suppliers, including pistons and spark plugs, are used in assembly. The engines being produced undergo leak testing, electronic systems testing, and comprehensive trials on dynamometer stands.
The AGR group's investment in the former General Motors and Volkswagen plants will amount to nearly RUB 90 billion. Kaluga Region Governor Vladislav Shapsha noted that the opening of this enterprise is an important step toward deep localization of automobile production in the region. The modernized engine plant has created about 500 new jobs.
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