21 April 2023, Bengaluru, India
The German automobile giant Volkswagen is looking forward to launching its electric car in India by next year. The premium electric SUV ID.4 was only available for the European, North American, and Chinese markets only, but as per the latest reports, the SUV ID.4 will be available in India anytime in 2024.
Volkswagen aims to launch its demanding electric product, SUV ID.4, in India, which will be in competition with the leaders in this segment of automobiles, like TATA Motors and KIA.
The competition will be stiff as Bhavish Aggarwal–led startup Ola Electric will join the stage with its first electric car.
This news came to light after a company official reported Volkswagen’s plans to PTI on April 18. The official said that Volkswagen would launch its premium electric SUV ID.4 in India to tap the fast-growing electric vehicle (EV) space in the country.
In the official report, it was mentioned that all the SUVs would be assembled completely in India at Volkswagen’s Aurangabad plant, with parts and components imported.
The company has high expectations from sales in India, and that 25% to 30% of it would come from the sale of EVs and the rest from Internal Combustion Engine (ICE) vehicles.
Volkswagen Passenger Cars India Brand Director, Ashish Gupta, told the news agency that the German company is following a dual approach of premiumization and electrification to establish a strong foundation and enhance its position in the country.
While Volkswagen is ready to establish its electric footprint, Gupta shows concern about the company’s acceptance in the EV sector in India. Gupta notifies that the recent launch of the company’s ICE car models in India will account for 40% to 45% growth in sales this year. His concerns about Volkswagen’s EV product were clear as he clarifies that the ecosystem is not fully ready in the country.
“The supply base is not ready. About 50% of the car cost of an electric car is the battery, and unless mass localization of battery manufacturing happens in India, none of the OEMs, not only us, will be able to do mass electrification,” he was quoted as saying.
However, after making this comment, Gupta was also quoted speaking positively of the approach the company has and how it will influence the business in the country. He emphasizes the urgency and that development should start now. Gupta says that they are aiming for mass electrification by 2026-27, and for that, they have to work now.
While foreign EV markets are largely influenced by four-wheelers, India’s four-wheeler EV market is in development and is currently led by two and three-wheeler vehicles. It was all possible due to the government’s help in pushing for EV adoption, which led to such drastic increases in the sale of two and three-wheeler EVs. The FAME II scheme was at the bottom of this growth.
On one side, where two and three-wheeler EVs are rising in popularity, four-wheeler EVs are taking baby steps to grow. Many factors come into play here when we talk about the controlled growth of four-wheeler EVs in India. The major factor is the range problem. With cars traditionally being used for larger travels, the range is something that pricks a consumer.
The second factor is the cost at which these EVs are sold. The cheapest EV starts at around ₹8 Lakhs, which, when compared to a non-EV car, is expensive. The majority of the population of India belongs to the middle-class section, and affording a car worth 8-9 lakhs INR, and that too the lower variant, is not a piece of cake. People can buy a non-EV car at lower prices with full specifications.
Sources – inc42, autocarindia, cardekho
As a highly skilled and experienced content writer, I have a passion for creating engaging and informative content that connects with audiences and inspires them to take action. With over 1 year of experience in the industry, I have honed my writing skills to craft content that is both effective and SEO-friendly.
Disclaimer – We have collected this information from various trustworthy sources on the Internet, and the facts have been checked manually and verified by our In House team.