Volkswagen is reducing its planned investment in electric vehicles (EVs) in India and is seeking a local partner to share the cost. The company has lowered its EV development budget from around $1 billion to about $700 million.
The move comes as VW’s presence in India remains small, the combined market share of Volkswagen and Skoda is just about 2%. Earlier talks with Mahindra & Mahindra for a partnership reportedly fell through last year. VW is now exploring other options, including Indian contract manufacturers such as JSW.
VW plans to launch its EV in India around 2028, in line with tighter emission norms starting 2027. In the meantime, it may import EVs, especially if an EU‑India trade deal makes this easier.
Despite the cutback, VW is committed to India, with Skoda’s affordable SUV, the Kushaq, performing well in the local market.
Also Read: Rajiv Jain’s GQG buys ₹5,094 cr stake in five Adani firms