Volkswagen (VW) is going big time in the Indian electric vehicle (EV) market with its CMP 21 platform. It was unveiled on October 18, 2024, and it is a strategic play that would allow VW to tap into India’s growing demand with affordable EVs. VW’s first CMP 21-based electric SUV is likely to be launched in mid-2027.
Key Characteristics of the Volkswagen CMP 21 Platform
The CMP 21 platform has been derived by Volkswagen China based on the Modular Electric Drive (MEB) architecture. This platform can support a wide range of electric vehicle models, which may revolutionise VW’s EV offerings in India.
- Cost Competitiveness: It is about 30% cheaper to produce compared to the MEB 31 platform, and hence, becomes a more viable option for India’s price-sensitive market.
- Variant Capability: CMP 21 supports mid-range SUVs from 4.3 m to 4.8m. It suits the introduction of electric variants of popular models in the market such as VW Taigun and Skoda Kushaq.
- The platform accommodates up to as many different battery sizes as possible. This means the size and range of the vehicle can vary according to varied customer requirements, which could range from 40kWh to 80kWh.
The Strategic Implications
By committing itself to the CMP 21 platform, Volkswagen Group takes a mammoth step forward into further expanding its presence in India’s fast-growing EV market. The company has reached out with a focus on the affordable electric SUVs. It reflects the desire to meet the needs of the local consumer and faces emerging standards for regulations, where the stiff CAFE III norms indeed form an essential backdrop.
Barriers to Success
But VW’s road to success shall not be without its speedbumps. Estimated to invest €2 billion (₹18,500 crore) in creating the CMP 21 platform, VW shall likely consider partnerships to spread the cost. VW has been discussing with Mahindra a possible joint venture but not really gone too far. Mahindra has significant market share in India’s SUV but was concerned about duplicated product overlap.
Anand Mahindra, chairman of Mahindra Group, said, “Countrymen have always enjoyed achieving mutual benefits through collaboration, but there must be a synergy in the product philosophy. Our focus remains to deliver feature-rich SUVs that appeal to the Indian consumers.”
The Future Road for Volkswagen
The German auto major has decided to launch its first electric SUV, built on the CMP 21 platform in India, by mid-20—a A five-seater, midsize, family-aimed vehicle to have performance and range choices. VW has to overcome the money crunch, optimise its supply chain, and possibly make some critical partnerships in a manner that will significantly lower production costs. If VW is capable of achieving quality, affordability, and efficiency on all fronts through local manufacturing, then it stands a great chance of becoming a key player in the Indian EV market.
ELCTRIK Speaks
Volkswagen’s announcement of the CMP 21 platform marks a new shift in strategy for electric vehicles in India. With the promise of affordable electric SUVs coupled with VW global know-how, it could accelerate India’s transition to electric mobility. Yet, the route ahead will not be easy: from investment to partnerships, to competition from established players. If Volkswagen can face these challenges head-on, the CMP 21 platform could very well be the game-changer it does for the company and likely for the Indian EV market as a whole.
