Skoda Auto Volkswagen India Pvt. Ltd. (SAVWIPL) has been cleared by the Maharashtra government for a fresh investment of ₹15,000 crore in its manufacturing facility in Chakan. The fresh investment is part of the ₹120,000 crore investments cleared by the Maharashtra government that will see several auto and component makers set up shop in the state across several regions for EVs, semiconductors and more. Apart from Skoda Auto Volkswagen India, the state government has also cleared Toyota Kirloskar Motor’s upcoming plant in Maharashtra.

Skoda Auto Volkswagen said it will utilise the fresh investment to develop new products including electric vehicles, along with upgrading its manufacturing facility and creating additional 1,000 jobs in the state. The announcement aligns with the automaker’s India 2.5 strategy which includes upgrading the existing made-in-India model range and introducing new products in the market. Devendra Fadnavis, Deputy Chief Minister of Maharashtra announced that the automaker is planning an EV and hybrid car plant at Chakan.

Skoda Auto Volkswagen Chakan Plant: New EVs, Upgradation, Improved Products Incoming

In a statement, Skoda-Auto Volkswagen said, “Skoda Auto Volkswagen India Pvt. Ltd welcomes the Maharashtra State Government’s approval of the fresh investment of up to ₹15,000 crore. The investment aims to further enhance the Group’s product portfolio in the best interests of the Indian customers while also focusing on more sustainable mobility solutions. This includes among other things BEVs and the further improved next generation of ICE vehicles, manufacturing facilities upgrades, and creating additional jobs – both direct/indirect – and thereby fostering sustainable growth in the region. We will provide more details on the agreement at a later date."

The news also comes at a time when Skoda Auto Volkswagen is said to be looking for an Indian partner to expand its interests in India. The automaker is reportedly in talks with several major players including JSW and Mahindra with the latter said to be a frontrunner. Notably, Volkswagen and Mahindra are already collaborating on the latter’s upcoming electric vehicles with the future INGLO-based EVs to use Volkswagen batteries.

Skoda Auto Volkswagen India 2.5 Strategy

The announcement reaffirms the German auto giant’s India plans which saw a major revival in 2021 with the India 2.0 strategy. That said, while Skoda Auto India has announced its next offering - the subcompact SUV for 2025, Volkswagen is yet to announce an all-new offering for the market. However, with the investments now in place, the automaker is expected to reveal more about its future product strategies going forward.

India acts as a major export hub for Skoda Auto Volkswagen, which will also receive a major boost with the latest investment. Meanwhile, the group could finally firm up its EV plans with the launch of models like the Skoda Enyaq and Volkswagen ID4 in limbo for a while now. Both models have been spotted testing in India on multiple occasions.

New Toyota Plant In Maharashtra 

Apart from SAVWIPL, the Maharashtra government’s approval has also greenlit Toyota India’s new greenfield manufacturing facility in the state. The company had announced plans to open its fourth facility in the country in Maharashtra at AURIC, Chhatrapati Sambhaji Nagar (formerly Aurangabad). The automaker will be investing about ₹21,273 crore in the new facility built for hybrid, plug-in hybrid, fuel cell EV and battery electric vehicles. The new facility is expected to generate about 8,800 jobs. This will be Toyota’s first plant in India outside of Karnataka.

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