Volkswagen Group approves major investment for India-made EVs
A fresh report from The Economic Times says Skoda Auto Volkswagen India Private Limited (SAVWIPL) has obtained preliminary approval from Volkswagen Group to invest one billion euros for its next round of new products in the country. The company plans to launch ICE, hybrid, and pure electric models measuring 4.3 to 4.8 metres in length and featuring SUV and MPV body styles under the India 3.0 project.
The new capital injection follows after a lengthy spell of hesitation, which was partly due to the weak response for the four ICE models SAVWIPL launched using the previous one-billion-euro investment in the India 2.0 project between 2021 and 2022. Internal issues at Volkswagen Group and a 1.4-billion-dollar tax evasion case in India involving alleged misclassification of imports also delayed the investment approval for the India 3.0 project.
SAVWIPL has zeroed in on the CMP 21 platform, which previous reports said means the China Main Platform (CMP), a modified version of the MEB 31 platform. Volkswagen Group renamed CMP to Compact Main Platform last year, but officially still labels it “China-specific.” Interestingly, the company revealed in an announcement earlier this year that it can use CMP not only for EVs but also plug-in hybrid models, which means it could extend the application to regular hybrid cars.
In April, a Business Standard report said that SAVWIPL has started working on a Skoda electric SUV measuring 4.5 metres in length, hinting at an Elroq-class low-cost model as its maiden locally manufactured EV. Former Skoda India Brand Director Petr Janeba himself revealed this development.
SAVWIPL manages not only the Volkswagen and Skoda mainstream brands but also the Audi, Porsche, and Lamborghini luxury brands in India. According to a report by The Economic Times, people in the know of the recent developments say the company is also considering Audi models based on the CMP 21 platform, without delving into any possible localisation plans.
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