Skoda And Volkswagen To Launch Affordable Electric Cars In India Using Made-For-China CMP21 Platform

Written By: Neeraj Padmakumar
Published: October 18, 2024 at 02:30 PMUpdated: Updated: October 18, 2024 at 02:30 PM
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Skoda Auto Volkswagen India Pvt Ltd (SAVIPL) is getting ready to enter the mainstream EV segment. The upcoming electric vehicles will be manufactured at the Chakan factory. They will reportedly be based on a new, more affordable made-for-China, CMP 21 platform.

volkswagen id.4

It was previously rumoured that Volkswagen would launch the ID.4 in India, and Skoda would come with the Enyaq. The VW site had listed the ID.4 and the Enyaq was spotted on test multiple times. Now it turns out that plans for the ID.4 and Enyaq could be scrapped, as these are proving to be expensive and the dealers aren’t confident about selling it.

No More PEAK!

Volkswagen once considered an entry-level EV, codenamed the PEAK EV for the Indian market. The carmaker planned to use the MEB21 platform for this. This is a more affordable, front-wheel-drive iteration of the VW MEB platform. It could thus spawn a Nexon.EV competitor which could have slotted comfortably in the Rs 15 lakh-20 lakh range.

Volkswagen Group had been in discussions with Mahindra to jointly develop the MEB21 architecture. Such a partnership would benefit VW as they could utilize Mahindra’s strong presence in India and local manufacturing expertise while the Indian carmaker would have been able to access Volkswagen’s advanced EV technology. It looks like Mahindra has turned this project down. Pursuing it independently would not be financially and operationally viable for the German giant either. The PEAK project thus stands cancelled.

The Workaround: CMP21-Based EVs

volkswagen new ev platform cmp 21 (1)

The upcoming CAFE III norms have made it necessary for VW Group to have EVs that sell, in their portfolio. EVs will help to reduce the net corporate Carbon emissions and help the company avoid penalties. Volkswagen plans to base its EVs on a made-for-China platform, to overcome financial and operational vulnerabilities and give the products proper pricing. Called the CMP 21 (China Main Platform), this chassis is an adaptation of Volkswagen’s MEB 31 architecture.

This low-cost platform was developed by VW China for use on various electric vehicles sold on Mainland China. It is said to be 30 per cent cheaper than the MEB 31. The development of this was completed in just 24 months! VW could devise a similar strategy for India as well.

The CMP21 is quite flexible and versatile. It supports midsize SUVs spanning 4.3-4.8m in length. This means, VW Group could base the electric versions of Kushaq, Kylaq and Taigun on it. These, if launched, will be able to put up a strong fight against the existing and upcoming electric vehicles from Tata, Mahindra and Hyundai. This platform can also be used as the base for an electric MPV.

Further details and specifications of the CMP 21 platform are unclear as we speak. It is, however, anticipated to feature a standard rear-wheel-drive layout and optional AWD. It could also accommodate batteries of various sizes and capacities (40kWh to 80kWh). The wheelbase will likely be identical to that of the ID.4.

CMP 21: Hurdles

Volkswagen Group has to dodge several hurdles before they can take the CMP 21 to the production line. Creating a reliable local supplier ecosystem demands hefty investments (around 2 billion euros). If or not VW Group would take this call in a seemingly unprofitable market like India, remains to be seen. This also happens at a time when VW China is witnessing a decline in sales and the manufacturer itself facing factory closures in its homeland.

The size of these required investments is one of the reasons that made Skoda-Volkswagen to search for a local partner in India, who would share the capital-load. CMP 21 was one of the major talking points of the VW- Mahindra conversations. As per SAVIPL’s pitch, Mahindra can take up the platform and design their own top hats and sell them as unique products.

The Indian manufacturer, however, seems to be reluctant. It could be due to the fact that Mahindra doesn’t need the Chinese platform as it has developed the INGLO platform for its ‘Born Electric’ range. Plus, Mahindra being an SUV brand, might not be happy with the low ground clearance of CMP21.

Regardless of if or not Mahindra hops in, Skoda and Volkswagen will develop the CMP 21 in India. The impending CAFE norms will further push them to accelerate the EV foray. The first EV to be based on this new platform will likely be out by mid-2027. The possible pricing that VW Group would give these vehicles remains a concern, as thriving in the Indian market with wrongly priced EVs would simply be not possible by then…