Volkswagen And Skoda Explore Low-Cost EV Opportunities With Mahindra

Volkswagen is making significant progress in creating a compact electric hatchback known as the 'ID.1.' This vehicle is being developed on a specialized electric platform called MEB21. It's expected to be available within the next five years, aligning with the broader effort by European car manufacturers to manufacture cost-effective electric cars. Volkswagen intends to offer the ID.1 at an affordable price point of approximately Euro 20,000 (equivalent to around Rs 18 lakh), positioning it below the recently unveiled ID.2all concept. For more in-depth information, continue reading below to discover all the key details.

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Volkswagen: cost-control Strategy

VW is emphasizing cost control, with a focus on developing unified battery cell technology that can be utilized across all its brands. This innovation has the potential to slash costs by up to 50 percent. The unified cell is versatile and capable of accommodating both LFP and NMC chemistries. Varied chemistries offer flexibility for different car classes, allowing the use of cost-effective materials for entry-level models, albeit with lower energy density and slower charging capabilities. Streamlining production is also crucial for cost reduction.

The MEB21 platform will also serve as the foundation for similar models from sister brands Skoda and Cupra. This platform, masterminded by the Volkswagen Group, prominently features Skoda's involvement. The official name of the model is yet to be confirmed.

Potential Manufacturing in India

According to sources, Volkswagen is considering the possibility of manufacturing the ID.1 model in markets like India, leveraging the strong production capabilities at the VW Group's Chakan facility and the cost advantages it offers. There are indications of efforts to develop an India-specific version of the ID.1, targeting sub-four-meter dimensions for both Volkswagen and Skoda. This endeavour involves the creation of an India-specific platform (codenamed MEB21G), with Skoda taking the lead in the low-cost EV program.

Key components, such as the electric motor, battery management system (BMS), and battery packs, will be localized, while battery cells will be imported from Germany. To meet an aggressive target price of under Rs 20 lakh, features will be minimized. Infotainment systems and central screens will be absent, with functions integrated into the digital instrument cluster. Some features could be offered via over-the-air (OTA) upgrades on a subscription basis or through one-time payments.

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Skoda Exploring Partnership with Mahindra

Industry sources reveal that Skoda is in advanced discussions with Mahindra for a collaborative effort to develop an affordable EV based on the MEB21G platform, catering to both Skoda and Volkswagen. This partnership is considered advantageous due to the existing relationship between VW and Mahindra for sourcing EV components. Mahindra has secured access to cutting-edge electric motors and VW's unified battery cell technology.

In India, Skoda has been entrusted with the responsibility of spearheading the development of future products for the Volkswagen Group. An independent study even highlighted Skoda's cost structure as more competitive than Mahindra's. The plan involves Mahindra, Skoda, and VW developing individual 'top hats' on the MEB21G platform while sharing common components to attain economies of scale and cost-sharing benefits.

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Challenges in Technology Sharing

However, it's worth noting that Volkswagen, in light of past issues like Dieselgate, is cautious when it comes to sharing its proprietary technology with external entities. Additionally, although Skoda is leading the discussions with Mahindra, the MEB21G platform is owned by VW, necessitating approvals for the sharing of technical information. Legal and bureaucratic complexities surrounding technology transfer may pose potential challenges to this partnership's expansion.

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