Volkswagen cancels its partnership with Mahindra for EV manufacturing in India

Volkswagen has cancelled its partnership with Mahindra for manufacturing EVs in India. The German car manufacturer has revealed that Volkswagen Group will be manufacturing EVs for India under its new project named “PEAK EV.” The new project is meant to built low-cost electric SUV that is meant for the Indian market.

Volkswagen Group has taken this decision after making a close observation on the EV landscape in India. Even though the two companies had initiated talks for joint development of small electric vehicle platform, it was later called off.

If reports are to be believed, Skoda Auto Volkswagen India has already commenced work on the new PEAK EV project. Under this project, a series of cars will be launched and the initial rollout is expected to be in 2026. The PEAK EV project will localize MEB21G architecture in India. The company is expected to focus on the entry and mid-size SUVs after that.

Volkswagen is planning to put additional investment of around Euro 1 billion (around Rs 9200 crore) for successfully localizing the EV platform.

Reports have suggested that the PEAK EV SUV will have a Volkswagen badge. After its launch, Skoda Auto will also offer its own EV derivative.