Skoda Auto Volkswagen India Pvt Ltd (SAVIPL) is gearing up to produce a range of mainstream electric vehicles to be manufactured at the company’s Chakan facility. Both Skoda and VW are yet to introduce EVs in India and have been struggling for a while to launch the Skoda Enyaq and VW ID.4 at a competitive price.
- VW PEAK EV project scrapped
- EV necessary to meet upcoming CAFE III norms
- Skoda-VW to go ahead with CMP 21 platform with or without a partner
The Volkswagen Group had also considered an entry-level EV, codenamed PEAK EV, for India. This project explored using VW’s MEB21 platform – a more affordable, front-wheel-drive variant of the group’s rear-drive MEB architecture – to develop a Tata Nexon competitor in the Rs 15 lakh-20 lakh range.
SAVIPL had entered discussions with Mahindra & Mahindra (M&M) to develop the MEB21 platform jointly. The partnership aimed to leverage Mahindra’s strong presence in India and local manufacturing expertise while utilising Volkswagen’s advanced EV technology. However, Mahindra showed limited interest in the project, and as a result, SAVIPL found it financially and operationally impractical to pursue the project independently, which led to its cancellation.
An India launch for ID.4 may be scrapped.
SAVIPL returned to the drawing board to find a cost-effective solution, which has become crucial with the impending CAFE III norms. These regulations make it essential for manufacturers to offer an EV to reduce fleet CO2 emissions and avoid penalties.
VW Group to leverage made-for-China platform for India
The VW Group has leveraged China’s extensive EV expertise and its cost-efficient manufacturing base to create a low-cost variant of its MEB architecture. This new all-electric platform, known as CMP 21 (China Main Platform), is an adaptation of the MEB 31 architecture. Uniquely developed by VW China, the CMP 21 platform benefits from China’s rapid development capabilities and low-cost structure. Sources indicate the CMP is 30 percent cheaper than the MEB 31, with development completed in just 24 months, and the group is planning a similar strategy for the Indian version too.
The flexible CMP architecture can accommodate midsize SUVs between 4.3 and 4.8 metres, giving rise to the possibility of electric versions of the Kushaq and Taigun, which would compete with a wave of midsize electric SUVs from Hyundai, Mahindra, Tata Motors and MG that’s expected from 2025 onwards. The CMP platform can also support a 7-seater electric SUV to rival bigger electric SUVs such as the Tata Harrier/Safari and Mahindra’s XUV.e9 and XUV.e8, which are likely to be introduced next year. It can even underpin an electric MPV.
Flexible CMP platform brings the possibility of a Taigun or Kushaq-based EV.
While the specifics of the CMP 21’s technical details remain under wraps, it is expected to offer a rear-wheel-drive setup as standard, with optional twin-motor, all-wheel-drive variants. The platform’s flexibility extends to accommodating different battery sizes, expected to range from 40kWh to 80kWh, with a wheelbase likely matching the ID.4’s 2,771mm – ample enough for a spacious cabin.
Skoda-VW CMP 21 platform: costs, hurdles
However, the financial commitment to bringing CMP 21 products to the market is substantial. Engineering, manufacturing and developing a local supplier ecosystem would require an estimated investment of around 2 billion euros (Rs 18,500 crore). This raises a critical challenge: justifying such an outlay in a price-sensitive, unprofitable market like India, particularly when Volkswagen is grappling with declining sales in key markets such as China and facing factory closures in its home country.
The hefty costs tied to developing the CMP 21 platform have prompted Skoda-VW to actively seek partners to share the financial burden. One key discussion point in the ongoing talks between SAVIPL and Mahindra is a proposed joint venture around the CMP 21. SAVIPL is pushing for Mahindra to adopt the platform and design its own top hats, which would provide economies of scale.
VW is in talks with Mahindra to use the CMP 21 platform (Mahindra’s own born-EV, the BE.05, used for represenation only).
However, Mahindra appears hesitant. Sources indicate that the company is wary of the CMP 21 due to potential overlap with its own ‘Born Electric’ range. Additionally, the CMP 21’s lower ground clearance doesn’t align with Mahindra’s philosophy of delivering SUVs with best-in-class clearance, a core pillar of its product line-up.
What’s certain is that both Skoda and VW are committed to developing the CMP 21 in India, with or without Mahindra’s involvement. With CAFE III norms looming, the absence of an EV in their line-up poses an existential threat in a market where exiting is simply not an option. The first CMP 21 product, a five-seater electric SUV, is expected to hit the market by mid-2027. While there’s no doubt the CMP 21 vehicles will be top-notch in terms of quality, the bigger and more pressing question is: at what price will they arrive, and will Indian consumers, spoiled for choice by then, embrace them wholeheartedly?
Also see:
Volkswagen readying Kylaq based compact SUV for 2026
