Volkswagen has stopped working with Mahindra-EV, designing a low-cost e-SUV for Indian

According to reports, Volkswagen Group has decided to end its partnership discussions with Mahindra Automotive and pursue an independent path with its PEAK EV project, which aims to introduce a low-cost electric SUV tailored for the Indian market. The company plans to localize the EV platform and powertrain and launch a series of electric vehicles, with the first SUV expected to roll out in 2026. Volkswagen is shifting its brand focus towards an all-electric future in India and sees the country as a key player in its global strategy.

• Mahindra Automotive and Volkswagen had plans to collaborate on electric vehicles (EVs) using Volkswagen’s electric powertrain.
• Volkswagen has decided to end discussions with Mahindra and pursue its own project called “PEAK EV” for the Indian market.
• The PEAK EV project aims to introduce a low-cost electric SUV specifically tailored for India.
• Skoda Auto Volkswagen India, Volkswagen’s Indian subsidiary, has already started work on the PEAK EV project.
• The project will localize the EV platform and powertrain for the Indian market, with the first SUV expected to be released in 2026.
• The focus of the project is on localizing the MEB21G architecture and producing entry- and mid-size SUVs.
• Volkswagen plans to invest at least Euro 1 billion to successfully localize the EV platform.
• The upcoming PEAK EV SUV will bear the Volkswagen badge, showcasing the brand’s commitment to an all-electric future in India.
• Skoda Auto will also introduce its own electric vehicle variant after the launch of Volkswagen’s SUV.
• India plays a significant role in Volkswagen’s global strategy, and the company plans to expand its electric vehicle portfolio in the country.
• Volkswagen acknowledges the challenges in the Indian market, particularly in terms of cost and scale for EVs, and is actively exploring alternative solutions.

Volkswagen Group’s Indian entity, Skoda Auto Volkswagen India, is developing its electric vehicle (EV) project called ‘PEAK EV’. They initially considered collaborating with Mahindra & Mahindra but have decided to proceed independently. The focus will be on entry and midsize SUVs, with a potential volume of over half-a-million vehicles. The first SUV EV is expected to carry the Volkswagen badge and target both domestic and export markets. Skoda Auto Volkswagen India aims to expand its presence in the EV space in India and introduce EVs from various brands.

Volkswagen Group has allocated an investment of 180 billion euros for the next five years, with India being one of the countries vying for a share. The localization of EV production in India would require an additional investment of at least a billion euros. The company is exploring options to develop a strong business case for EV localization, including the possibility of localizing the MEB21 platform and battery production in India.

This shift in focus signifies Volkswagen’s commitment to introducing a low-cost electric SUV specifically for the Indian market. Skoda Auto Volkswagen India has already started working on the project, localizing the EV platform and powertrain for India. The ‘PEAK EV’ project will roll out a series of electric vehicles, starting with a low-cost SUV in 2026. Volkswagen is actively exploring alternatives and focusing on a viable business case for localizing the MEB21 platform in India. This demonstrates Volkswagen’s dedication to navigating India’s evolving electric mobility landscape.

Volkswagen Group’s Indian entity, Skoda Auto Volkswagen India, has decided to pursue its own electric vehicle (EV) project called ‘PEAK EV’ independently, ending its partnership discussions with Mahindra. The company aims to introduce a low-cost electric SUV specifically for the Indian market and is actively working on localizing the EV platform and powertrain. This move showcases Volkswagen’s commitment to an all-electric future in India and its dedication to navigating the country’s evolving electric mobility landscape.