From EVs to luxury SUVs and local Porsche assembly, Škoda Auto Volkswagen realigns its India strategy with a ₹100 billion investment.
Škoda Auto Volkswagen India plans to invest approximately ₹100 billion over the next five years to expand its local operations, according to a recent report by The Economic Times.
This investment has been approved by Volkswagen AG, the company’s parent group. It will primarily support the development of models in the premium utility vehicle segment, including electric vehicles (EVs) and sport utility vehicles (SUVs).
As part of the initiative, the company will begin local assembly of Porsche models, marking the first such move for the group in the Indian market. This step aims to reduce import costs and improve the brand’s price positioning in the luxury vehicle segment.
Although the group’s current models have experienced limited demand in India, the company is proceeding with its investment strategy.
The company has referred to this phase as ‘India 3.0’, aiming to shift its product strategy towards higher-margin categories and scale up domestic manufacturing.
Meanwhile, Škoda Auto Volkswagen India remains in discussions with a potential domestic partner. These talks were first reported in December 2024, when reports surfaced suggesting the collaboration process may have been put on hold.
As per the reports, the pause was linked to an investigation into alleged customs duty violations. However, the company has since clarified that discussions with the prospective partner are still ongoing.
Aligned with its long-term plans in India, this ₹100 billion investment is part of Škoda Auto Volkswagen’s ongoing efforts to adapt to regulatory and market developments in the region.
The company maintains an established presence across major global automotive markets.
