Skoda Auto Volkswagen India To Make Fresh Investment In India Worth ₹10,000 Crore

Skoda Auto Volkswagen India Pvt Ltd (SAVWIPL) has reportedly gotten the green light from the global headquarters to invest roughly ₹9,900 crore to expand its operations in the country. People in the know told ET Auto that this investment will be a part of SAVWIPL’s India 3.0 plan, which will focus on premium SUVs, MPVs and electric vehicles. 

The new investment plan comes at a period of indecision as SAVWIPL has achieved less than expected sales from its India 2.0 lineup, which includes the Kushaq, Slavia, Taigun and Virtus. SAVWIPL has still not been able to find local manufacturing and technology partners. 

There has also been a delay in finalising the investment, partly because of the tax demand by Indian authorities, and partly because of issues within the Volkswagen group. VW Group had earlier said it would shut at least three factories in Germany, laying off tens of thousands of its workforce and shrinking the operations of its remaining plants. 

As mentioned earlier, the India 3.0 plan will focus on premium SUVs and MPVs with electric, hybrid and internal combustion engine (ICE) powertrains. The new vehicles will be based on the brand’s new CMP 21 platform. The affordable EV architecture has been designed particularly for India, and will be called India Main Platform (IMP). 

People in the know told ET Auto that one of the first cars to launch based on the new CMP 21 platform will be from Audi. SAVWIPL wants to focus on the utility vehicle segment, as it is a rapidly growing sector in the country. The investment is expected to be spread out across five years, starting in 2028.