Volkswagen Reshapes India EV Strategy with Cost Cuts and New Partnerships
Volkswagen has slashed its planned investment for an India-specific electric vehicle platform by 30%, reducing the outlay from $1 billion to $700 million. The automaker is now in talks with local contract manufacturers and JSW Group to share costs and mitigate market risks.
First locally produced EVs are expected by 2028, though imports may arrive sooner if EU-India trade negotiations progress. This strategic pivot comes as VW struggles to gain traction in India, where it holds just 2% market share despite nearly two decades of operations.
The move aligns with Volkswagen's global restructuring, including its software joint venture with Rivian targeting a 2027 launch. India represents a critical test for legacy automakers as they attempt to catch up with domestic players in one of the world's fastest-growing EV markets.
