Skoda Volkswagen India plans deeper collaboration with local suppliers for future development
Skoda Auto Volkswagen India is exploring opportunities to deepen collaboration with Indian suppliers as part of its broader localisation strategy. The move aligns with the company’s “local-for-local” approach, which focuses on developing vehicles and components within India to improve efficiency, reduce costs and strengthen the domestic automotive ecosystem.
According to the company’s leadership, the evolving automotive landscape – particularly the growing role of software and digital technologies – has opened up new opportunities to work more closely with engineering partners. Local suppliers are increasingly being involved in the product development process, allowing the company to leverage India’s engineering expertise while accelerating development timelines for future models.
The Volkswagen Group’s digital and engineering presence in India has expanded in recent years. Volkswagen Group Digital Solutions in Pune has grown significantly, employing several thousand professionals across locations including Pune, Gurugram and Bengaluru. In parallel, the group is enhancing the capabilities of its technology centre in Pune, which previously played a key role in the India 2.0 initiative and is now expected to contribute to global development programmes as well.
Local sourcing is also an important component of the group’s global supply chain. Components produced in India are exported to multiple international locations through a network of Tier 1 and Tier 2 suppliers. At the same time, vehicles manufactured at the Chakan facility near Pune contribute to exports, with roughly a quarter to one-third of production currently shipped to overseas markets.
The company continues to balance export opportunities with its focus on expanding its share in the Indian market. Over the past several years, the group has introduced models built on platforms tailored for India, reflecting its strategy to combine global engineering standards with local manufacturing capabilities. As the automotive industry evolves with technologies such as artificial intelligence and advanced software systems, the company expects collaboration with suppliers and engineering partners to play a larger role in improving efficiency and maintaining competitiveness.
