The Volkswagen Group is planning to invest at least a billion euros in India to update technology in its line of cars in that market. The next generation of vehicles, expected to launch between 2027 and 2030, will utilize modern tech that will allow for electric and hybrid powertrains, larger sizes, and other advanced software possibilities. The company’s investment plans to follow India’s new policy on electric vehicles, and will be finalized once this new policy is clarified from a legal standpoint.
The VW group’s subsidiary in India is known as Skoda Auto Volkswagen India (SAVIPL) and operates the Skoda and Volkswagen brands in that country. SAVIPL’s current line of products are limited in size and tech by their platform, the smaller MQB A0 27. This update will plan to use the larger MQB A0 37 platform, and is working with Indian suppliers to localize production there. Although similar in name, the newer MQB A0 37 allows for production of larger C-segment models.
This larger platform is more flexible, whereas the previous platform limited the size of some vehicles and made them appear smaller. For example, an SUV with up to 7 seats will be possible with the new MQB A0 37 platform.
Additionally, the platform will allow for hybrid or EV powertrains, which will allow for cleaner-burning vehicles that cause less pollution. Since a goal of this investment is to fall in line with India’s new EV policy, it appears this is a major motivator for updating the vehicle platform.
As far as specific vehicles are concerned, these next-generation models are being considered for the update: the Slavia, Virtus, Kushaq, and Taigun, with one of these reported to be the previously-mentioned 7-seat SUV. Notably, the previous, smaller platform made the current VW Taigun and Skoda Kushaq appear smaller than they would otherwise be. Currently Skoda and VW’s line are known as “India 2.0” or “India 2.5 SUV,” but there is no report on what this next generation of larger models will be called.
It should be noted that although the larger MQB A0 37 platform is more flexible, its electronic and electrical architecture will need to be updated to reach certain modern tech requirements, and this work will require significant investment. With such an update, such technology as Advanced Driver Assistance Systems (ADAS) would be possible, along with other cutting-edge automotive software.
India’s new EV policy requires a minimum investment of 400 million euros (or 500 million dollars), and the VW group plans to move forward with at least a billion euro investment. There may be partners included in the deal. It appears that clarity on India’s EV policy is the main roadblock to this deal’s completion.
With this investment, the VW group aims to modernize its line of products in India. By 2027-2030, the goal will be to have this new line of cars and SUVs available to consumers. This generation will be differentiated from the previous by options for larger sizes, hybrid powertrains, and advanced software. These plans, though not fully confirmed, are in advanced discussion with relevant partners and appear to be in their final stages.