Volkswagen is set to introduce a low-cost electric SUV in India in the latter half of this decade, as announced by Piyush Arora, CEO of Skoda Auto Volkswagen India. The move comes after the company’s previously planned low-cost combustion car for the Indian market did not materialize into series production.
Arora stated, “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,” in an interview with Reuters. The model’s success would hinge on achieving sufficient volumes to justify a “three-digit million investment.” In a strategic move, Volkswagen is also exploring the possibility of exporting the new electric vehicle to South East Asia, the Gulf States, and North Africa.
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Given the anticipated gradual uptake of electric vehicles (EVs) in India, Arora acknowledged the need for export possibilities to justify the investment. The Indian government aims for electric vehicles to constitute 30% of the total market by 2030, although as of 2023, the penetration stood at just 2%, according to Reuters. Analysts project the share of EVs to reach between 10% and 20% by the end of the decade.
The specifics of the Group platforms under consideration were not disclosed by Arora. Volkswagen has been working on a simplified version of the Modular Electric Drive Kit (MEB) to produce affordable models, such as the upcoming ID.2 in Europe.
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Additionally, there are reports of a potential collaboration with Renault on a €20,000 model. Moreover, Volkswagen is engaged in partnerships in China to develop cost-effective electric vehicle platforms. Delays in the planned supply of MEB components to Indian car manufacturer Mahindra have also been reported.
In parallel, Volkswagen is evaluating the market launch of the Skoda Enyaq in India, although Arora did not provide a specific timeline for this endeavor.
