Overview
- Skoda Auto Volkswagen India has reduced planned spending on a local EV platform to about $700 million from roughly $1 billion, according to people familiar with the plans.
- The company is in talks with potential collaborators, including JSW Group and an Indian contract manufacturer, after negotiations with Mahindra & Mahindra fell through last year.
- Volkswagen’s combined India market share has hovered near 2% for nearly two decades, prompting a more cautious investment approach.
- Executives are evaluating short-term EV imports as a stopgap, a move that would depend on progress in EU–India trade discussions, according to the reports.
- Skoda’s locally built Kylaq compact SUV is gaining traction in India, even as global automakers rebalance EV investments across regions.