Categories: Environment

Volkswagen is preparing an inexpensive electric SUV to be produced in India

The electric Volkswagen, priced at less than 20,000 euros, and possibly produced in collaboration with Renault, is expected to launch in India in about a year.

The Volkswagen Group is reportedly exploring ways to introduce a low-cost electric car into the Indian market. The German group is attracted by the country’s potential and aims to release a compact, electric, and affordable SUV by the middle of the decade.

Piyush Arora, Managing Director of Skoda Auto Volkswagen India, stated, “We are actively working on an entry-level electric vehicle. We are currently evaluating which group platform would best suit this India-dedicated project.”

India before Europe?

However, deciding the best approach presents challenges, as it involves an investment of several hundred million euros and electric car sales in India currently account for only 2% of total car sales. Piyush Arora added, “The penetration of electric vehicles will not be as rapid as one might think,” and also mentioned the possibility of selling the vehicle in other markets. Regulatory changes and safety standards in India are making the country more globally competitive, making it easy to adapt and sell a car built there elsewhere. Therefore, there are several options being considered.

Volkswagen aims for the SUV to be exclusively electric and it could potentially be the well-known 20,000 euro electric model that could be jointly produced with Renault. Additionally, the tax on zero-emission cars in India is 5%, while it is 43% on hybrids and 48% on thermal cars, further encouraging Volkswagen in the Indian market.

The booming Indian market

In 2023, the Indian market became the third largest in the world after China and the United States. It has surpassed Japan and is expected to experience rapid expansion due to the country’s large population and the early stage of automobile development. The ecological transition also plays a role in this growth. Many foreign manufacturers are investing in India, attracted by government initiatives to strengthen the automobile sector. Even Tesla is considering establishing a presence there. The Indian authorities aim to achieve a 30% market share for electric cars by 2030, but analysts forecast that it may reach only 10 to 20% by the end of the decade.

Read also :
Volkswagen Golf 9: we know more about its engine
Why will the Volkswagen group produce fewer cars in the coming weeks?
Volkswagen ID.X Performance Concept: a 550 hp electric sedan in preparation?

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