Volkswagen Is Lowering The Cost of Manufacturing EVs In India

Volkswagen is cutting electric vehicle (EV) development costs in India by a third and is looking for a local partner to help it grow its small market share.

The local unit of Europe’s largest automaker has cut costs from $1 billion to about $700 million for a platform it is developing for the production of electric vehicles, sources familiar with the situation said, according to Bloomberg.

Volkswagen is unwilling to continue investing billions of US dollars in a market where it has only managed to maintain a two percent market share after nearly two decades. The carmaker is looking for an Indian partner to share costs and risks after talks with Mahindra & Mahindra fell through last year, sources said. Finding allies is key for now to securing further internal funding, the company added.

Its subsidiary, Škoda Auto Volkswagen India, is in talks with several potential partners, including an Indian contract manufacturer, they added.

The company has also approached JSV Group, the local partner of Chinese auto giant SAIC Motor, to explore a partnership, the sources said.

The Volkswagen Group sells cars under the Škoda and Volkswagen brands, along with a portfolio of luxury brands such as Lamborghini, Audi, and Porsche.

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