The Volkswagen Group, with an eye on the burgeoning electric vehicle (EV) market in India, has initiated its "PEAK EV" project, aiming to localize EVs for the Indian market. This venture, set to commence in 2026, marks a significant stride towards introducing multiple EVs, particularly SUVs, in the rapidly evolving Indian automotive landscape.
Independent Localisation Effort
After engaging in discussions with Mahindra to explore collaborative efforts for a small EV platform, Volkswagen Group's lead entity in India, Skoda Auto Volkswagen India, has opted to independently pursue the PEAK EV project. This ambitious initiative involves localizing the MEB21G architecture in India, a platform likely to spawn a range of SUVs for both the Volkswagen and Skoda brands.
Scope of the PEAK EV Project
The PEAK EV project is anticipated to yield multiple SUVs with a notable export potential. Industry insiders suggest a production volume exceeding half a million vehicles, catering to both the domestic and export markets. While the specifics of the project are yet to be finalized, the primary focus is expected to be on the entry- and mid-size SUV segments.
Brand-Specific EVs
The first EV SUV born out of the PEAK EV project is likely to carry the Volkswagen badge, targeting an initial volume of 50,000 units. Positioned for both domestic and international markets, this EV SUV marks Volkswagen's strategic shift towards an all-electric future in India. Skoda's EV offering, following Volkswagen's lead, is poised to enter the market subsequently.
Skoda Auto Volkswagen India's Vision
Piyush Arora, MD and CEO of Skoda Auto Volkswagen India, highlighted the significance of India in the Volkswagen Group's growth strategy. Acknowledging India's robust economic growth, Arora affirmed the group's commitment to expanding its electric vehicle portfolio in the country. While specific details are yet to be unveiled, the future lineup will encompass both internal combustion engine (ICE) and battery electric vehicle (BEV) models.
Investment and Localisation Challenges
To materialize the PEAK EV project, Skoda Auto Volkswagen India anticipates an additional investment of at least Euro 1 billion. Thomas Schafer, the global CEO of Volkswagen AG, emphasized the need for sound capital allocation in this significant investment. Localizing the EV platform and powertrain in India calls for a meticulous business case, considering volumes, localisation plans, and potential brand involvements.
The PEAK EV project signals a transformative phase for Skoda Auto Volkswagen India as it navigates the complex EV landscape in India. With an eye on the future, the group aims to contribute to India's electric mobility journey, leveraging localisation, innovation, and strategic investments.