VW plans low-cost electric SUV from India before 2030

VW's long-announced low-cost combustion car from India never made it into series production. Now the head of India has announced that the VW Group wants to launch a low-cost electric SUV in India in the second half of this decade, which could also be exported to other countries.

The information comes from Piyush Arora, CEO of Skoda Auto Volkswagen India. “We are actively working on an entry-level EV. We are evaluating which VW Group platform can be best adapted to build a compact electric SUV in India,” he told Reuters.

The model would need the volumes to justify a “three-digit million investment”. Volkswagen is therefore also considering exporting the new electric vehicle to South East Asia, the Gulf States and North Africa. “Penetration of EVs in India will not be as fast as needed to justify the investment, so we are looking at the possibility of exporting that product,” Arora said.

The Indian government is aiming for electric vehicles to account for 30 per cent of the total market by 2030. In 2023, it was just two per cent, according to Reuters. The news agency writes that analysts expect the share of electric vehicles to be in the range of 10 to 20 per cent by the end of the decade.

VW examines Enyaq export to India

Arora probably left open exactly which Group platforms are being considered – at least the Reuters article makes no mention of this. VW is working on a simplified version of the MEB to build 25,000-euro models such as the upcoming ID.2 in Europe. However, VW is already rumoured to be cooperating with Renault on a possible €20,000 model. VW is also working with partners in China on cheaper electric vehicle platforms. According to reports from the summer, there are delays in the planned supply of MEB components to Indian car manufacturer Mahindra.

Volkswagen is also evaluating a possible market launch of the Skoda Enyaq in India. However, Arora did not give a timetable.

reuters.com