German automaker Volkswagen Group aims to introduce a compact electric SUV in India by the second half of this decade, according to Piyush Arora, CEO of Skoda Auto Volkswagen India.
The company is actively working on the entry-level EV and is evaluating the most suitable VW Group platform for the Indian market.
Arora mentioned that the new electric vehicle would require substantial volumes to justify the investment, and the company is exploring the possibility of exporting the product to markets in Southeast Asia (SEA), the Gulf Cooperation Council (GCC) countries, and North Africa.
India’s favorable taxation structure for EVs is a key factor driving the group’s focus on electric mobility in the country. However, if the government provides support, the company may also consider introducing hybrid vehicles.
The regulatory changes in India are making the country more globally competitive, making it easier for Volkswagen Group to produce cars for export from India.
