SAVWIPL (Skoda Auto Volkswagen India Pvt Ltd) has been a notable European car manufacturer in India. The company operates multiple Volkswagen Group brands in the Asian subcontinent. Their new India 3.0 strategy has now been reportedly greenlighted with a USD 1 billion boost (approx Rs 10,000 Cr) from the Volkswagen Group Germany.
This is a major cash inflow for SAVWIPL that is currently experiencing a slowdown in sales as rivals have been pushing forward in key segments. With this influx of capital, SAVWIPL is expected to expand operations under the India 3.0 strategy that should spawn new locally manufactured vehicles as well. Let’s take a closer look.
Skoda Volkswagen India 3.0 Strategy
India 3.0 strategy is expected to be an exciting one and Volkswagen Group Germany is set to infuse USD 1 billion (approx Rs 10,000 Cr), as per a recent report. India 3.0 strategy is likely to revolve around India’s premium SUV segments and affordable sub 4m segments to come up with a holistic roadmap to cater a wider demographic.
This investment is expected to happen across a five-year period starting from 2028. India 3.0 strategy will also incorporate a push to electric vehicles with an India-specific CMP 21 platform on which Skoda, Volkswagen and even Audi vehicles are expected to spawn. With localization, these EVs could be priced competitively as well.
The company is even expected to fast-track more Porsche models to be locally assembled in India. There might be a push for Porsche SUVs, especially the Macan and Cayenne, which are among Porsche’s global best-sellers. This budget boost will provide SAVWIPL with enough capital to expand their operations and portfolio and increase the sales envelope from what it is now.
For context, Skoda is the 7th best-selling car brand in India and Volkswagen was 10th best-selling for the month of May 2025. Total combined sales was 9,588 units. Skoda Kylaq alone constituted 4,949 units that month with 51.61% of the total sales, suggesting the need for more affordable offerings.
What to expect?
Currently, SAVWIPL is selling mainstream, premium, luxury and high performance vehicles across multiple brands. The main volume generators are the vehicles launched under India 2.0 (Skoda Slavia, Kushaq, Volkswagen Virtus, Taigun) and India 2.5 (Skoda Kylaq) strategies. The best-seller is the recently launched Skoda Kylaq.
Volkswagen is speculated to launch a sub 4m SUV of its own under the India 3.0 strategy, based on Skoda Kylaq’s platform. This will emerge as the most affordable Volkswagen offering in India and a primary volume generator. However, there doesn’t seem to be any developments in that regard. Facelift versions of Slavia, Virtus, Kushaq and Taigun are most likely.
