Skoda Volkswagen to come up with new India specific products including EVs
Skoda Auto Volkswagen India, the local arm of Volkswagen AG, is advancing its plans to develop India-specific platforms for electric and internal combustion engine vehicles. The move underscores the group’s commitment to addressing the unique demands of the Indian market while also enhancing its global export capabilities.
A Dedicated EV Platform for India
The group has initiated work on a new electric vehicle architecture tailored for India, called the India Main Platform (IMP). This platform is a localised derivative of the China Main Platform (CMP) and aims to balance affordability with adherence to local regulations. The IMP will serve as the foundation for four new electric SUVs: a compact and a midsize SUV each for Skoda and Volkswagen.
This development follows earlier discussions on platform sharing with Mahindra, which did not materialise. The company also explored adapting its European MEB21G platform for the Indian market but this approach was ultimately deemed financially unfeasible.
Leveraging Localisation for EVs
Skoda-Volkswagen aims to heavily localise the IMP platform to align with India’s cost-sensitive market and the country’s evolving regulatory landscape. The company is also eyeing India as an export base for these EVs, further solidifying the platform’s strategic importance.
Future ICE Vehicles to Use Localised MQB A037 Platform
On the ICE side, Skoda-Volkswagen is focusing on the MQB A037 platform, a localised version of the group’s global architecture. This platform will underpin the next-generation Skoda Kushaq and Volkswagen Taigun, which are expected to feature increased dimensions and advanced electrical and electronic systems. The new architecture will also enable the integration of hybrid technology, offering flexibility in powertrain options.
Additionally, the MQB A037 platform could support larger models, including 7-seater SUVs, which are gaining traction in the Indian market. The platform will also be used for the next iterations of the Skoda Slavia and Volkswagen Virtus sedans.
Investments and Supplier Engagement
Skoda-Volkswagen has initiated discussions with Indian suppliers to localise production for both the IMP and MQB A037 platforms. Industry estimates suggest that the development of the MQB A037 program alone could require an investment of €1-2 billion (approximately Rs. 888 crores to Rs. 1800 crores).
The carmaker faces a tight timeline to meet upcoming Corporate Average Fuel Efficiency (CAFE 3) norms, which emphasise lower emissions and fuel consumption standards.
Strategic Importance of India
India remains a pivotal market for the group’s global growth strategy. By focusing on localised platforms for EVs and ICE vehicles, Skoda-Volkswagen aims to expand its product portfolio while addressing consumer preferences for modern, efficient and feature-rich vehicles.
The company recently unveiled the Skoda Kylaq and has indicated ongoing exploration of additional models with hybrid and electric powertrains to cater to the Indian market’s evolving needs.
Outlook
With its India-specific IMP and MQB A037 platforms, Skoda-Volkswagen is positioning itself to cater to diverse market demands, from compact electric SUVs to hybrid-ready sedans and larger ICE models. By prioritising localisation and supplier partnerships, the group is not only preparing for domestic growth but also reinforcing India’s role as an export hub within its global strategy.
