Over the last five years, VW has invested Rs 5 billion into locally made ICE models.
The Volkswagen Group will adopt a phased approach when it comes to localization of its EVs in India. Oliver Blume, Chairman of the Board of Management of VW Group, stated that the company wouldn’t commit to offering affordable, ‘Made in India’ EVs until there’s a strong business case for it.
Blume was speaking on the sidelines of the IAA Mobility 2023 in Munich. “We have a ramp-up curve for electric mobility, which includes bringing the right products and right positioning, especially for the Indian market, where you also need to address the lower segment. We need some time to ramp up,” he said.
Blume added that the company would have a calibrated approach for India. The localization of EVs in India will be guided by the way the region develops in terms of charging infrastructure.
Over the last five years, VW has invested Rs 5 billion into locally made ICE models. Thomas Schafer, CEO of Volkswagen Passenger Cars, said that the carmaker is unlikely to make any fresh investments in pure ICE models.
“If we start work on an ICE model today, it will take three years from now. Hence, (it) doesn’t make sense to be doing so, and instead, the focus should be on conserving the resources for BEVs,” Schafer added.
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