Skoda Volkswagen Group is positioning India as a global engineering hub, with its 33,000 sq ft R&D expansion in Pune aligned with its “Make in India, for India and the world” strategy, marking a shift from localisation to original product development for global markets.

The new Baner facility, alongside its Technology Centre Pune (TCP) established in 2019 at Chakan, will house over 250 engineers, taking Škoda Auto Volkswagen India’s total engineering strength to over 450. The focus is now on designing platforms, software and digital features for both domestic and international markets.

“This is about giving India a stronger role in global development,” said Piyush Arora, Managing Director and Chief Executive Officer of Škoda Auto Volkswagen India, describing the evolution as giving the country a “Voice of India” within the group’s global ecosystem.

A company official said the Pune engineering centre is being positioned as a lead development hub within the group, with India teams now driving work on global platforms, software architecture and future mobility programs for multiple markets.

The shift is already visible in the success of the MQB-A0-IN platform, the first vehicle architecture developed substantially in India, which underpins models such as the Kushaq, Taigun, Slavia and Virtus. More than 500,000 vehicles have been built on this platform, demonstrating that India-led engineering can deliver global standards, including five-star safety ratings, while remaining cost competitive.

India is also emerging as a key export base. The group has shipped over 700,000 vehicles from India to markets across Latin America, Africa, Southeast Asia and the Middle East, positioning the country as a hub not just for production but also for engineering-led global supply chains.

The expansion adds a new layer to this strategy, with a sharper focus on software development, digitalisation, automation and advanced safety technologies, areas that are becoming central as vehicles evolve into “computers on wheels.”

By locating engineering teams in an urban tech cluster, the company is tapping into India’s software talent pool to build next-generation infotainment, connectivity and driver-assistance systems.

The Group is working on adapting global electric vehicle architectures for local conditions such as heat and dust, while developing compact vehicle formats tailored to emerging markets. Models such as the Kylaq, the Group’s first sub-4-metre SUV developed for India, highlight this approach, combining global safety and performance standards with cost-sensitive engineering.

The broader shift reflects how global automakers are rethinking India’s role. Instead of treating it as a standalone market, companies are increasingly using India to develop “hardened” products — vehicles engineered to handle extreme conditions and price constraints — which can then be deployed across similar markets worldwide.

“For Volkswagen, this marks a deeper integration of India into its global value chain, not just as a manufacturing base, but as a source of engineering, technology and product development”. As Arora indicated, the next phase will see India playing a larger role in global projects, with locally developed platforms and technologies feeding into the group’s worldwide portfolio..

Published on May 1, 2026