'PEAK EV' project: Volkswagen's made-in-India e-SUV to debut by 2026
Volkswagen is kicking off its electric vehicle (EV) project, dubbed "PEAK EV," with plans to localize its EV platform in India by 2026. This move comes after talks with Mahindra to develop a small EV platform together fell through. The group's lead entity in the country, SKODA Auto Volkswagen India, aims to localize the new-age 'MEB21G' architecture. This new platform will be utilized to produce multiple e-SUVs for both Volkswagen and SKODA brands.
The first all-electric SUV to get Volkswagen badge
The first e-SUV under the PEAK EV project will likely sport a Volkswagen badge and target a volume of 50,000 units for both domestic and export markets. This move signifies a major shift for the German brand toward all-electric vehicles in India. A SKODA-branded mainstream EV alternative is planned to follow Volkswagen's product. Insiders say the potential volume for the platform in India surpasses half a million vehicles, focusing on entry-level and mid-size SUV segments.
SKODA Auto Volkswagen India's expansion in EV space
Piyush Arora, MD and CEO of SKODA Auto Volkswagen India, shared that India is crucial for the Volkswagen Group due to its strong economic growth. The company intends to grow its presence in the electric vehicle market in the coming years. He added, "We have already introduced electric vehicles in the country from Audi and Porsche brands with completely built-up units (CBUs), and going forward, we will be introducing EVs from other brands as CBUs and locally manufactured models."
Localization hurdles and investment requirements
Thomas Schafer, Global CEO of Volkswagen AG, noted that localizing the EV platform would necessitate an additional investment of at least €1 billion (about Rs. 9,183 crore). He stressed the importance of sound capital allocation and a solid business case for India to be included in the group's €180 billion investment plan over the next five years. Schafer recognized the challenges of cost and scale in the Indian market and expressed his desire to localize the MEB21G platform.
