Volkswagen Group Approves Next-Gen India-Made Mass-Market Models, Including EVs, Under India 3.0 Investment Push
In a major boost to India’s electric mobility landscape, Volkswagen Group has given preliminary approval for a fresh investment of €1 billion (approximately ₹9,000 crore) to drive its next phase of product development in India. The investment, to be channelled through Skoda Auto Volkswagen India Private Limited (SAVWIPL), will support the rollout of new internal combustion engine (ICE), hybrid, and fully electric models as part of the company’s ambitious India 3.0 project.
Focus on SUVs and MPVs with Local Production Plans
Under India 3.0, SAVWIPL plans to introduce a range of vehicles between 4.3 to 4.8 metres in length, predominantly in SUV and MPV body styles. The project aims to cater to India’s growing demand for versatile and electrified mobility solutions, blending affordability with Volkswagen Group’s global engineering expertise.
Delayed But Decisive Move
This fresh commitment comes after a period of internal deliberations, slowed by challenges such as the tepid market response to SAVWIPL’s earlier India 2.0 ICE models and a $1.4 billion tax dispute linked to alleged import misclassification. These factors, along with internal restructuring at the Volkswagen Group, had delayed the green light for the India 3.0 investment.
CMP 21 Platform at the Core
SAVWIPL will base its new offerings on the CMP 21 platform, previously known as the China Main Platform, a modified and cost-efficient derivative of Volkswagen’s MEB 31 electric architecture. Although initially developed for China, CMP 21 — now rebranded as Compact Main Platform — offers flexibility for EVs, plug-in hybrids, and potentially even regular hybrids, broadening Volkswagen’s options for the Indian market.
Notably, sources indicate that Audi models based on CMP 21 could also be on the horizon, though details of localisation or production strategies remain under wraps.
Skoda’s First Local EV in the Works
Signalling its EV ambitions, SAVWIPL has reportedly begun work on a Skoda electric SUV around 4.5 metres long, potentially inspired by the Elroq-class models seen in Europe. Former Skoda India Brand Director Petr Janeba had earlier hinted at this as the company’s first locally manufactured electric vehicle.
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The €1 billion infusion underscores Volkswagen Group’s renewed commitment to the Indian market, particularly as the country accelerates towards clean mobility goals. With this, SAVWIPL aims not only to regain momentum in ICE and hybrid segments but also to make a decisive push into affordable EVs for Indian consumers.
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