Skoda Auto Volkswagen India Private Limited (SAVIPL), a subsidiary of the Volkswagen Group, is nearing the finalization of its next investment phase and expansion in India. The company is exploring new vehicle architectures and all-new models, including electric vehicles, for the Indian market.

Industry sources indicate that Skoda-Volkswagen is in talks with Indian suppliers to localize the MQB A0 37 platform. This larger, wider first-generation MQB platform, used in vehicles like the third-gen Octavia and Mk 7 VW Golf, would allow SAVIPL to produce C-segment models.

Currently, VW and Skoda’s ‘India 2.0’ models and the upcoming ‘India 2.5’ SUV are built on the smaller second-generation MQB A0 27 platform, introduced globally in 2016. This platform, designed for the group’s smaller global products like the VW Polo, T-Roc, and Skoda Kamiq, is limited in length and width. This limitation has resulted in Skoda Kushaq and VW Taigun appearing half a segment smaller with a narrow back seat.

Potential for a 7-Seater SUV

For future generations of the Taigun and Kushaq, the MQB A0 37 platform is under consideration. This larger platform offers Skoda and VW more design flexibility and could support a 7-seater SUV. However, the MQB A0 37 platform uses an old first-gen electrical and electronic (E/E) architecture, necessitating significant investment to update. The E/E architecture is crucial for modern cars as it supports future connectivity, software, and ADAS requirements.

Governments at the state level may offer incentives for hybrids, making this an attractive option. SAVIPL is exploring four new vehicles on this architecture: the next-gen Slavia, Virtus, Kushaq, and Taigun. Earlier this year, it was reported that the next phase of investment for India has been approved, and the MQB A0 37 platform is being studied to expand the addressable market. The discussions are in the final stages, with new vehicle launches expected between 2027 and 2030.

The VW Group should invest at least a billion Euros (over Rs 9,000 crore), either independently or with potential partners according to sources. The company is also interested in participating in the Indian government’s new EV policy, which requires a minimum investment of Euro 400 million (about Rs 3,650 crore).

The switch to the MQB A0 37 platform could enhance Skoda and Volkswagen’s offerings in India, allowing for larger vehicles, hybrid powertrains, and potentially a 7-seater SUV, aligning with the growing market demand and regulatory incentives.