Skoda Auto Volkswagen India (SAVWIPL) is poised to redefine India’s automobile manufacturing landscape with a significant expansion of its Chakan plant in Pune. With an investment of INR 15,000 crore, the initiative marks a strategic move under Volkswagen’s “India 2.5” roadmap, reinforcing India’s position as a global hub for automotive innovation and sustainable mobility.
The expansion, spanning an anticipated 2 million sq. ft., will introduce state-of-the-art production lines dedicated to Battery Electric Vehicles (BEVs) alongside enhanced internal combustion engine (ICE) vehicles. This ambitious endeavour aligns with India’s growing push towards green mobility and energy-efficient vehicle production, positioning the country as a leader in electric vehicle manufacturing. According to industry experts, the move is set to generate approximately 1,000 direct and indirect jobs, strengthening the local economy and supporting Maharashtra’s ambitions of becoming a preferred destination for high-tech automotive investments. The plant, already a cornerstone of Volkswagen’s presence in India, will benefit from cutting-edge technological advancements aimed at reducing carbon emissions and optimising production efficiency.
As of March 2025, the expansion project is in the EPC contractor tendering phase, with the selection process expected to conclude within the next 60 days. Construction is likely to commence by mid-2025, with a targeted completion date set for 2026. Analysts highlight that this investment underscores the automaker’s confidence in India’s rapidly evolving electric mobility ecosystem and its commitment to bolstering domestic manufacturing capabilities.
Industry observers view the expansion as a crucial step towards India’s vision of becoming a global EV production hub. With increasing consumer demand for sustainable transport solutions and government incentives fostering green technologies, Skoda Volkswagen’s Chakan expansion could play a pivotal role in shaping the future of India’s automobile industry. However, challenges such as infrastructure readiness, supply chain complexities, and evolving regulatory policies will need to be addressed to ensure seamless execution of this landmark project.
