Volkswagen ignites its EV India strategy with “Peak EV,” a project promising multiple, locally-built electric SUVs, starting 2026
Volkswagen is shifting gears on its Indian electric vehicle plans with Project Peak EV, a game-changer plan for multiple, made-in-India electric SUVs starting in 2026. Skoda Auto Volkswagen India has reportedly ditched its initial plans for a joint platform with Mahindra & Mahindra, and is building a dedicated EV platform from scratch.
To that end, VW’s MEB21G architecture is set to be localised for the Indian market, paving the way for a fleet of SUVs under both the Volkswagen and Skoda banners. VW’s first electric SUV under the new plan is aiming for a potential volume of 50,000 units annually, across domestic and export markets. Skoda is primed to follow suit with its own EV offering later.
Interestingly, VW’s upcoming compact SUV below the Kushaq and Taigun could be a Skoda-only affair, as per reports. While the Czech brand could enter the sub-4-metre SUV space, VW will enter the EV space in the Indian market. This divide could help the two brands expand and capture a wider audience without cannibalising each other’s sales.
Challenges arise as VW Group CEO Thomas Schafer acknowledges cost and scale concerns in the Indian EV market. The company is diligently exploring options and crafting a robust business case for long-term success. Localisation is key, with estimates suggesting an additional investment of at least 1 billion euros. Schafer emphasizes sound capital allocation, factoring in volume, localisation plans, and brand involvement.
Despite the hurdles, India presents a golden opportunity for Volkswagen Group. Skoda Auto Volkswagen India’s record-breaking FY23 performance, with a US$ 2.2 billion turnover and 48% profit surge, solidifies its commitment to the Indian market. With an export potential exceeding 500,000 units, India is set to become a major EV hub for the Group.
Project Peak EV marks a pivotal moment in VW’s journey towards electrifying India. With a localized platform, significant export potential, and strategic brand positioning, the company is gearing up to be a major force in the country’s burgeoning EV landscape. This is just the starting line of an electrifying new chapter for VW India, which promises to redefine mobility in the region.