Volkswagen mulls diluting stake in Skoda Auto VW India

SAVIPL has commenced work on low-cost electric SUVs based on the MEB21G platform.

The Volkswagen Group is reportedly looking for a partner in India. The carmaker is also said to be open to diluting its stake in its wholly-owned India subsidiary, Skoda Auto Volkswagen India Pvt. Ltd. (SAVIPL)

According to media reports, Volkswagen is keen on partnering with another carmaker to share the investment required to transition from ICE to EV platforms and the risks emanating from it. VW is open to diluting its 100% stake in its Indian subsidiary provided there are strong synergies on platform sharing and parts sourcing.

There have been reports suggesting that SAVIPL has already commenced work on low-cost electric SUVs based on the MEB21G platform. The project codenamed PEAK EV will call for a minimum investment of 1 billion euros and will spawn four different SUVs before the end of the decade.

Earlier, the VW Group has had discussions with Tata Motors and China’s SAIC. The carmaker was also in talks with Mahindra to explore the possibility of sharing the MEB21G architecture. That being said, the two companies recently signed an agreement that will allow Mahindra to tap into MEB’s components bin for its INGLO electric platform.

Source: Autocar India