Volkswagen has started work on a new 16,000-square metre parts distribution centre (PDC) in Gurgaon, India, which is expected to be up and running by the end of the year.

Work on the centre, designed to serve the Northern region of India which accounts for 35-40% of the carmaker’s parts sales in the country, marks the beginning of the first phase of VW’s Depot Network Development Project. The company is planning to set up depots in a further three regions: Greater Mumbai, Bangalore and Kolkata. Combined storage capacity across the sites is expected to be around 43,000 square metres.

The first centre is being built next to the planned Kudli-Manesar-Palwal (KMP) corridor, a location that is expected to significantly improve lead times for parts deliveries to dealers and service centres in the region.

At a ground-breaking ceremony last week VW Group Sales India’s managing director, Maik Stephan, was joined by Dietmar Hildebrandt, director of Group Service at the division.