Volkswagen Group has announced its intentions to introduce a mass-market electric vehicle (EV) in India, aiming to tap into the burgeoning EV segment and export opportunities. Here are the key highlights of Volkswagen's plans:
1. Entry-Level EV for India
- Volkswagen Group is planning to introduce a made-in-India, mass-market EV tailored specifically for the Indian market. This EV is slated for launch in the second half of the ongoing decade.
- The company aims to address the growing demand for EVs in India with a localized product, requiring significant investments.
2. Overlapping Electrification and ICE Strategy
- Volkswagen's strategy for electrification in India aligns with its internal combustion engine (ICE) strategy. The focus will be on offering both India-specific and global products.
- The company is evaluating the potential for an entry-level EV segment in India and considering substantial investments in this direction.
3. Export Opportunities
- Export potential will play a crucial role in justifying the investment in EV manufacturing in India. The company is conducting feasibility analyses to explore export opportunities for the made-in-India EV.
- Volkswagen plans to leverage India's automotive ecosystem and export capabilities to penetrate new markets, particularly in South-East Asia and GCC countries.
4. Product Lineup and Strategy
- Volkswagen's PEAK EV project aims to introduce an EV SUV to India by 2026, based on the localized MEB21G architecture.
- The company is exploring opportunities to bring larger, more premium, and tech-heavy models to the Indian market, including a compact SUV based on the MQB A0 IN platform.
- Skoda, under Volkswagen Group, is also actively pursuing localization efforts and exploring export markets for its vehicles.
5. Focus on Exports
- Exporting cars from India has been a significant pillar of Volkswagen Group's presence in the country, with around 30% of total production being exported.
- The company is targeting newer export markets for both Skoda and Volkswagen vehicles, with a focus on South-East Asia and GCC countries.
- EV exports from India are seen as a key component of Volkswagen's future growth plans, with the South-East Asian market identified as a potential destination.
6. Leveraging Global Strength
- With its robust global strength and distribution network, Volkswagen Group aims to capitalize on export opportunities and strengthen its position in emerging markets.
Volkswagen's commitment to introducing a mass-market EV in India underscores its strategic focus on electric mobility and its aspirations to expand its presence in the region's evolving automotive landscape.