Skoda VW plots ₹10,000 cr comeback with India 3.0

Skoda Auto Volkswagen India Pvt Ltd (SAVWIPL) has received in-principle approval from its German parent to invest an additional ₹1 billion (about ₹10,000 crore) for expanding its operations in the country, said people aware of the development. Under its new India 3.0 road map, the world's second-largest automaker will sharpen focus on the fast-growing premium utility vehicle segment in the country including SUVs and electric vehicles.
The fresh investment plan tracks a period of indecision within VW due to lower-than-expected sales from its current lineup of India 2.0 models.
India bet amid global overhaul
These include the Kushaq, Slavia, Taigun, and Virtus. Also, its search for a local manufacturing and technology partner has so far been inconclusive.
Delay in finalising the investment was partly due to issues within the VW Group, and also a tax demand on the auto conglomerate by Indian authorities. Last September, VW said it would shut at least three factories in Germany, lay off tens of thousands of staff, and shrink its remaining plants as part of a deeper-than-expected overhaul.
Focus on UVs
Unlike its current plan, which focuses on volume models, India 3.0 will target premium SUVs and MPVs across electric, hybrid, and internal combustion engine (ICE) variants.
Vehicles under India 3.0 will be based on the
CMP 21 platform
—an affordable EV architecture designed for India. It will underpin a range of electric SUVs in the mid-size category spanning 4.3 to 4.8 meters, potentially allowing SAVWIPL to compete in the EV segment.
People said the automaker is also weighing plans to launch Audi cars based on the
CMP 21 platform
. SAVWIPL's increased focus on the UV segment comes amid a rapidly growing share of such vehicles in the Indian passenger vehicle market. UVs comprised 65% of total passenger vehicle sales in India last fiscal year. SAVWIPL's investment, expected over five years starting 2028, follows a similar commitment made in 2018 under the India 2.0 initiative, and highlights the growing importance of India for VW Group. Skoda, which leads the group's operations in India, views the country as its most critical market outside Europe.
In India, the VW Group comprising Skoda, VW, Audi, Porsche and Lamborghini brands is also looking to increase operational synergy.

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