Volkswagen and Skoda are looking into affordable EVs with Mahindra

Volkswagen is making considerable advancements in the development of the “ID.1,” a small electric hatchback. The MEB21 electric platform is a specialised platform being used to construct this vehicle. It is anticipated to go on sale within the next five years, in line with a larger initiative by European automakers to produce affordable electric vehicles. Volkswagen plans to position the ID.1 below the newly released ID.2 all concept and sell it at a reasonable price of about Euro 20,000 (about Rs 18 lakh). Continue reading below to learn all the important elements if you’re looking for more in-depth information.

Volkswagen’s cost-cutting plan

With a focus on creating a single battery cell technology that can be used across all of its brands, VW is putting a strong emphasis on cost containment. This invention could result in cost reductions of up to 50%. Both LFP and NMC chemistries can be accommodated by the unified cell due to its adaptability. Different chemistries provide versatility for various automobile classes, enabling the use of low-cost materials for entry-level cars, albeit with poorer energy density and slower charging speeds. Cost reduction also depends on streamlining the production process.

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Additionally, the MEB21 platform will serve as the basis for comparable cars from sister brands Cupra and Skoda. Skoda’s role in this platform, which was conceptualised by the Volkswagen Group, is strongly displayed. The model’s official name has not yet been determined.

Volkswagen
credit: autonews

India’s potential for manufacturing

Using the significant production capabilities of the VW Group’s Chakan facility and the economic savings it offers, sources claim that Volkswagen is examining the prospect of producing the ID.1 model in countries like India. There are signs that efforts are being made to create a version of the ID.1 specifically for India, aiming for sub-four metre proportions for both Volkswagen and Skoda. In this project, an India-specific platform (codenamed MEB21G) would be developed, with Skoda taking the helm of the low-cost EV initiative.

Batteries will be imported from Germany, but other essential parts including the electric motor, battery packs, and battery management system (BMS) will be manufactured locally. Features would be reduced in order to aggressively hit the target price of under Rs 20 lakh. 

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There won’t be any central screens or infotainment systems; instead, the digital instrument cluster will house all of these features. Some features might be made available through one-time purchases or over-the-air (OTA) upgrades on a subscription basis.

Skoda and Mahindra are considering a partnership

According to industry sources, Skoda and Mahindra are in early negotiations for a joint project to produce a cheap EV based on the MEB21G platform that will serve both Skoda and Volkswagen. Due to the already-existing link between VW and Mahindra for obtaining EV components, this alliance is thought to be helpful. Mahindra has gained access to VW’s unified battery cell technology and cutting-edge electric motors.

Skoda has been given the task of leading the development of future products for the Volkswagen Group in India. Even more competitive than Mahindra’s cost structure, according to an independent assessment, is Skoda’s. In order to achieve economies of scale and cost-sharing advantages, Mahindra, Skoda, and VW will create distinct “top hats” on the MEB21G platform while utilising shared components.

Challenges in Sharing Technology

It’s important to note, though, that Volkswagen is wary of disclosing its confidential information to other parties due to earlier problems like Dieselgate. Additionally, even though Skoda is in charge of the conversations with Mahindra, VW owns the MEB21G platform, making approvals for the exchange of technical information necessary. The growth of this relationship can face obstacles due to the complex legal and administrative rules regarding technology transfer.

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