Volkswagen considers local assembly for an India-spec electric vehicle to manage costs
Volkswagen is assessing the possibility of locally assembling a battery-electric vehicle tailored for the Indian market, with a potential launch timeline extending beyond 2027. While the company has not confirmed the exact model, the move signals a cautious but strategic approach to its electric vehicle plans for India.
This direction aligns with comments previously made by Skoda, Volkswagen Group’s sister brand, which had indicated in 2024 that its India-bound EV strategy would depend on regulatory clarity. Both brands are awaiting clearer guidelines on upcoming CAFE norms as well as the government’s long-term stance on taxation for electric and hybrid vehicles.
Cost considerations appear to be central to Volkswagen’s thinking. Operating in highly competitive segments, the brand is conscious that pricing and localisation decisions can have significant implications over the long term. Although the recently announced free trade agreement is expected to support electrification, its benefits for EVs are likely to materialise gradually, prompting Volkswagen Group to explore near-term solutions rather than wait for policy-driven advantages.
Earlier expectations suggested that Volkswagen and Skoda might introduce an electric SUV similar in size to the Volkswagen Taigun and Skoda Kushaq. However, both brands have since reassessed their positioning, indicating a shift in focus regarding which EV segment they plan to enter in India.
Among the potential candidates from Volkswagen’s global portfolio is the Volkswagen ID.Polo. Carrying a nameplate that holds strong recognition in India, the ID.Polo’s size and specifications could allow it to be positioned at a more competitive price point if local assembly is pursued.
Any future Volkswagen Group electric vehicle for India is expected to be assembled at the company’s facility in Chhatrapati Sambhaji Nagar, where models from Volkswagen, Skoda and Audi are currently produced or assembled.
