Skoda Auto Volkswagen India Pvt Ltd (SAVWIPL) has secured approval from the Maharashtra government for a significant new investment of ₹15,000 crore into its manufacturing plant located in Chakan. This fresh round of funding is part of a broader investment package worth ₹120,000 crore that the state government has greenlit to foster the development of various sectors, including electric vehicles (EVs), semiconductors, and more.
The initiative will see a host of automobile and component manufacturers establish or expand their operations across different regions in Maharashtra. In addition to Skoda Auto Volkswagen India, the Maharashtra government has also given its nod to Toyota Kirloskar Motor for the establishment of its upcoming facility within the state.
These developments reflect Maharashtra’s growing role as a hub for cutting-edge automotive and technology-driven manufacturing projects, especially in the areas of EV production and semiconductor manufacturing. Skoda Auto Volkswagen has revealed that it plans to utilize the new ₹15,000 crore investment to support the development of new products, with a specific focus on electric vehicles.
This capital injection will not only drive the creation of a new line of EVs but also aid in upgrading the company’s Chakan manufacturing plant. As part of this expansion, the automaker aims to generate 1,000 additional jobs, further boosting employment opportunities within the state.
This announcement is in line with Skoda Auto Volkswagen’s broader “India 2.5” strategy, which focuses on modernizing its existing range of made-in-India vehicles, as well as introducing innovative new models tailored to the Indian market. By investing in product development and manufacturing infrastructure, the company is positioning itself to play a key role in the country’s rapidly evolving automotive landscape, particularly in the transition towards sustainable mobility solutions.
Devendra Fadnavis, Maharashtra’s Deputy Chief Minister, has confirmed that Skoda Auto Volkswagen is in the process of planning a new manufacturing facility at Chakan, specifically dedicated to producing electric and hybrid vehicles. This strategic move underscores the company’s commitment to embracing the future of automotive technology and contributing to India’s shift toward cleaner, greener transportation options.
Additionally, this news arrives amid reports that Skoda Auto Volkswagen is seeking to forge new partnerships within India to expand its footprint in the country. The automaker is believed to be in discussions with several major industry players, including JSW and Mahindra & Mahindra, with the latter emerging as a likely candidate.
This potential collaboration could further strengthen Volkswagen’s ties to the Indian automotive market, as the two companies are already working together on Mahindra’s future electric vehicles. Notably, Mahindra’s upcoming INGLO-based EVs are set to feature Volkswagen’s battery systems, showcasing the synergies between the two companies in the electric vehicle space.
Skoda Auto Volkswagen India Pvt Ltd (SAVWIPL) is the Indian subsidiary of Volkswagen Group, managing the operations of five iconic brands—Skoda, Volkswagen, Audi, Porsche, and Lamborghini. Established to streamline production and growth in India, SAVWIPL focuses on manufacturing, product development, and market expansion, with a strong emphasis on electric mobility and sustainable solutions.
