Skoda Auto Volkswagen India Private Limited (SAVWIPL) is in a tough pickle as its negotiations with Mahindra & Mahindra have fallen through. According to an Economic Times report, the German car manufacturing giant is now looking at other alternative partnerships and is open to discussions with JSW and Tata Motors. Last year, reports were coming in thick and fast that Mahindra and Skoda Volkswagen could enter into a joint venture for electric vehicle platform sharing. However, with those plans now off the table, the company is actively seeking a new domestic partner.
Skoda Volkswagen looking at the shared platform
SAVWIPL doesn’t see any value in creating a brand new EV architecture as it will take a lot of investment and time. The company is looking to partner with domestic players and reach an EV platform license agreement. Based on the reports, the Mahindra tied-up might not be on the cards yet, the SAVWIPL is still optimistic and has left options open.
Skoda Volkswagen is already in talks with a leader in the EV segment, Tata Motors, who already have a born electric platform, the Acti.ev scalable architecture. The Indian automaker is gearing up to launch a slew of EVs starting from the Harrier EV followed by the Safari EV and then the much-awaited Sierra EV.
What is interesting to note from the newspaper report is that it mentions JSW Group and not JSW MG. This raises the question, is JSE planning to enter the passenger vehicle segment with its own model? Currently, JSW Group is focused on commercial electric vehicles, manufacturing EV buses and trucks. Recently, the company announced that it will raise Rs 1,487 crore for the new electric vehicle manufacturing plant in Maharashtra. It will have the capacity to roll out 10,000 electric buses and 5,000 electric trucks annually.
Why is Skoda-Volkwagen focusing on EVs?
Skoda Auto Volkswagen, including Audi, aims to secure 4% of the market by 2026 and 5% by 2030. However, its current lineup — Skoda Slavia, Kushaq, and Volkswagen Taigun have struggled to make an impact on car sales. To strengthen its position, the company is now looking to diversify its portfolio by entering the EV segment, which remains in its early stages in India.
