Volkswagen has suspended further investments in its electric vehicle program for India. The company is currently awaiting the outcome of ongoing joint venture negotiations with the Indian conglomerate JSW Group.
Despite the pause in funding, Volkswagen has already completed the basic design and development work for its India-specific electric vehicle platform, known as the India Main Platform or IMP.
The group aims to adapt its Chinese CMP 21 electric vehicle architecture for the Indian market. The strategy relies on local production and the use of domestic components to ensure cost competitiveness.
Volkswagen and JSW signed a memorandum of understanding in September to explore a potential joint venture. The partnership aims to develop and produce passenger cars for both domestic sales and export.
In 2025, Volkswagen and its brand Skoda sold 117 000 vehicles in India, marking a 36 percent increase. The company is seeking a local partner to share expansion costs and improve supply chain access.
The company has been searching for a local partner for nearly two years following failed negotiations with Mahindra. Last year, Volkswagen decided to cut development costs for Indian EVs by one-third.
