In a strategic move to enter the Indian electric vehicle (EV) market, the Volkswagen Group has unveiled its EV localization project, codenamed “PEAK EV,” with a substantial investment of Euro 272.9 billion (approximately Rs 25,089 crore). Skoda Auto Volkswagen India will lead this ambitious project, aiming to introduce multiple EVs to the Indian market by 2026.
Originally considering collaboration with Mahindra for a small electric vehicle platform, the group has chosen an independent route, with Skoda Auto Volkswagen India spearheading the development of the born EV platform. The PEAK EV project focuses on localizing both the electric vehicle platform (MEB21G) and powertrain, necessitating an additional investment of at least Euro 1 billion. This new EV architecture will be utilized to create multiple SUVs for both Volkswagen and Skoda brands.
The primary emphasis will be on the entry- and mid-size SUV segment, with the potential to manufacture over half a million vehicles on the platform in India. The initial SUV under this project, likely carrying the Volkswagen badge, is expected to achieve volumes of 50,000 units for domestic and export markets. Piyush Arora, CEO of Skoda Auto Volkswagen India, outlined plans for future EV expansion, introducing both fully built-up units (FBUs) and locally manufactured models across various brands. However, overcoming localization challenges will require a significant investment of at least Euro 1 billion.
Skoda Auto is set to launch its electric car, the Skoda Enyaq iV, in India this year. Built on Volkswagen Group’s MEB born electric platform, compatible with multiple battery systems and body styles, the architecture will be shared with the Volkswagen ID4. Skoda also plans to introduce an affordable, mass-market EV priced under Rs 20 lakh.
Volkswagen’s electric SUV strategy for the Indian market includes three models under its revised ID model strategy: the electric version of the Tiguan SUV, Trinity EV, and a small EV. The Volkswagen Taigun EV is slated to debut in 2025, while the latter two are expected to arrive by 2028.
