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?

Published by

Recent Posts

Red Dot: this red dot on your car which can earn you a fine of up to 100,000 euros!

Red Dot: this red dot on your car which can earn you a fine of up to 100,000 euros!

In Germany, a round, red sticker called the 'Red Dot' has become a symbol of…

8 hours ago

Lamborghini Huracan STJ: a last goodbye?

The Enigma Behind the Name “STJ” The recent trademark registration of “Huracan STJ” by Lamborghini…

9 hours ago

“Get directions at a glance”: what is this new feature coming to Google Maps?

Google Maps introduces a new feature for smartphone users: Directions at a Glance. Here's what…

10 hours ago

The editor-in-chief’s editorial: “the nostalgic echo combines with the future”

While its market shares are following an evolution as reassuring as that of the Mer…

11 hours ago

Cars blocked in the United States on suspicion of forced labor

The United States has blocked thousands of cars at its ports. They suspect that a…

12 hours ago

This Mustang-MGB mix is ​​one of the most unusual cars of the moment

This old English sports car from the 1970s actually hides several parts from a Mustang…

13 hours ago

This highway is closed for an “indefinite” period!

Part of the A9 motorway has been closed for several days due to a demonstration…

14 hours ago