Volkswagen Group has initiated its PEAK EV project in India, aiming to localize its electric vehicle production. This project, with a budget of approximately Euro 272.9 billion (about Rs 25,089 crore), is set to commence multiple electric vehicles from 2026 onwards. Skoda Auto Volkswagen India, the leading entity of Volkswagen Group in India, is overseeing this endeavor. Initially, the plan involved collaborating with Mahindra to jointly develop a small electric vehicle platform, but the company has decided to pursue the PEAK EV project independently.

This initiative marks a significant step in Volkswagen Group’s commitment to the Indian electric vehicle market, showcasing its dedication to offering a diverse range of EVs in the coming years. The PEAK EV project is expected to shape the landscape of electric mobility in India, with a strong focus on SUVs and potential for significant export volumes. Taazinews 24 has extended its presence to WhatsApp. Tap here to join and receive the latest updates on Automobile News.

Key Highlights:

1. PEAK EV Project Overview:
1. Volkswagen Group is embarking on its PEAK EV project to localize both the electric vehicle platform and powertrain.
2. The first electric SUV under this initiative is expected to bear the Volkswagen badge, with a Skoda derivative likely to follow.
3. An additional investment of at least Euro 1 billion is anticipated for the local production of electric vehicles.

2.Variants and Trims:
1. The new Creta facelift will offer seven trim levels: E, EX, S, S(O), SX, SX Tech, and SX(O).
2. Only the 1.5 petrol-MT variant will be available across all trims, while the 1.5 turbo-petrol will be exclusively offered in a fully-loaded trim with a 7-speed DCT gearbox.

3.Skoda Auto Volkswagen India EV Plans:
1. Skoda Auto plans to localize the MEB21G architecture, potentially spawning multiple SUVs for Volkswagen and Skoda brands, with significant export potential.
2. The focus is on the entry- and mid-size SUV segment, and details of the project are yet to be finalized.

4.Brand-Specific Offerings:
1. The first SUV EV is expected to carry the Volkswagen badge, targeting volumes of 50,000 units for both domestic and export markets.
2. Skoda Auto is planning to release its mainstream EV as an alternative to Volkswagen’s product, positioned below the Kushaq and Taigun.

5.Investment and Localisation Challenges:
1. The move towards localizing EV production will require an additional investment of at least Euro 1 billion.
6. Thomas Schafer, global CEO of Volkswagen AG, highlighted the need for sound capital allocation based on factors like volumes, localization plans, and the involvement of different brands.

6.Future of EVs in India:
1. Piyush Arora, MD and CEO of Skoda Auto Volkswagen India, emphasized the crucial role of India in the Volkswagen Group’s plans, with the introduction of both imported and locally manufactured EVs.
2. The portfolio will encompass both Internal Combustion Engine (ICE) and Battery Electric Vehicle (BEV) models.

7.Challenges and Alternatives:
Thomas Schafer discussed the challenges of cost and scale for EVs in the Indian market, exploring alternatives and working on a strong business case for localizing the MEB21.

8.PEAK EV Timeline:
The PEAK EV project is set to roll out multiple electric vehicles starting in 2026, marking Volkswagen Group’s dedicated focus on the electric vehicle segment in India.

FAQs: (Frequently asked Questions)

What is the PEAK EV project by Volkswagen Group?
The PEAK EV project is Volkswagen Group’s initiative to localize electric vehicle production in India, starting from 2026.

Which brands are involved in the PEAK EV project?
Skoda Auto Volkswagen India, the lead entity of Volkswagen Group in India, is overseeing the PEAK EV project.

What is the expected investment for localizing EV production in India?
An additional investment of at least Euro 1 billion is anticipated for the local production of electric vehicles.

Which brands are expected to offer EVs in India under this project?
The first electric SUV is likely to bear the Volkswagen badge, with Skoda Auto planning to release its mainstream EV as an alternative to Volkswagen’s product.

What is the focus segment for the PEAK EV project?
The core focus is likely to be in the entry- and mid-size SUV segment, with details of the project yet to be finalized.

When is the first electric SUV expected to be launched under the PEAK EV project?
The first electric SUV under the PEAK EV project is expected to be launched in 2026.

How many units are anticipated to be produced on the PEAK EV platform in India?
The potential volume is in excess of half a million vehicles on the platform from India, with a focus on SUVs.

What are the challenges and alternatives for EVs in the Indian market?
Challenges include cost and scale, and alternatives are being explored to create a strong business case for localizing electric vehicles.

What is the future of EVs in the Indian market according to Volkswagen Group?
Volkswagen Group plans to introduce both imported and locally manufactured EVs, with a diverse range of powertrains across various market segments.

What is the role of India in Volkswagen Group’s global investment plans?
India holds a crucial position in the Volkswagen Group’s plans, with the country staking a claim for a share in the Euro 180 billion investment lined up for the next five years.

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