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Volkswagen is gearing up to introduce a new entry-level electric vehicle (EV) in India during the second half of this decade, with plans for it to be exported globally. Skoda Auto Volkswagen India is at the forefront of developing this affordable EV, which signifies a significant step in the brand’s global electrification strategy. Piyush Arora, the Managing Director and CEO of the company highlighted the importance of localizing the EV extensively, aligning with the brand’s commitment to adapting to the Indian market and meeting international demands.

Investment and Feasibility Considerations

The ambitious project of introducing an affordable EV requires a substantial investment, with the company seriously evaluating opportunities. Piyush Arora emphasized the need for a triple-digit million euros investment, underscoring the volume requirements and the vital role of the Indian market in the brand’s global volumes and exports. Currently, a feasibility study is underway to assess the viability of the project, showcasing the brand’s commitment to navigating the complexities of the Indian market’s electrification transition.

Skoda’s Strategy for Premium EVs and Export Expansion

Skoda, a part of the Skoda Auto Volkswagen India group, is actively considering the localization of the MQB A0 37 architecture. This move aims to introduce premium EVs embedded with advanced technologies in India, alongside plans for a compact SUV underpinned by the MQB A0 IN platform. Simultaneously, the brand is exploring export opportunities, with Vietnam emerging as a potential market for products like Slavia and Kushaq. Skoda’s strategic steps highlight its commitment to contributing to India’s evolving electric mobility landscape.

Volkswagen and Skoda’s Collaborative Approach to Electrification

Both Volkswagen and Skoda play crucial roles in India’s shift towards electrification, with their first EVs slated for launch in the current year. These moves align with global trends toward sustainable mobility, with a particular emphasis on the Indian market’s significance in their electrification journey. The brands strategically position themselves to be at the forefront of the evolving automotive landscape, embracing the challenges and opportunities presented by the surge in electric vehicles. 


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