Volkswagen is currently facing a challenging paradox in its business journey. While its electric vehicle (EV) sales are growing, the company is seeing a sharp decline in profits. In the first quarter of the current financial year, Volkswagen Group reported an after-tax earnings drop of 40.6 percent, bringing in €2.18 billion, a significant decline despite a modest 1.4 percent increase in total vehicle sales, which reached 2.13 million units globally. This reveals the financial strain that legacy automakers face while transitioning from traditional combustion engine vehicles to electric mobility.

The core reason behind the dip in profits lies in the rising costs associated with Volkswagen’s shift to electric vehicles. The company is currently investing heavily in battery manufacturing plants, expanding EV production lines, and simultaneously managing its internal combustion engine (ICE) vehicle segment. These parallel operations require considerable resources, which are impacting the company’s bottom line even though vehicle deliveries are on the rise.

One of the highlights of Volkswagen’s EV journey is its achievement in Europe. The company has crossed a significant milestone with its one millionth EV rolling off the production line at the Zwickau plant in Germany. EV models such as the ID.4 and ID.5 have seen a sharp increase in popularity. In fact, sales of Volkswagen EVs more than doubled in Europe during the first quarter, with a combined total of 43,700 global deliveries from just those two models. This success helped Volkswagen surpass Tesla in terms of European EV registrations. By the end of March, 65,679 new electric Volkswagens were registered across Europe, marking a clear shift in consumer preference and a strong acceptance of Volkswagen’s electric lineup.

However, the story is different in China, which is the world’s largest EV market. Despite its global growth, Volkswagen has seen its EV sales in China fall by more than a third in the same period. This decline can be attributed to the aggressive competition from local players, particularly companies like Xiaomi, which are offering affordable yet high-performance EVs that better suit local preferences. Volkswagen is struggling to match the pace, innovation, and pricing strategies of these Chinese brands, leading to a loss in market share.

In India, Volkswagen’s EV strategy has yet to fully materialize. Although the company has shown interest in the Indian EV market, actual progress has been slow. Through its local subsidiary, Skoda Auto Volkswagen India, the brand has indicated plans to locally manufacture electric vehicles. Yet, there have been no concrete announcements or confirmed timelines for launches. The company’s progress is further hindered by an ongoing $1.4 billion tax dispute with Indian authorities. The issue revolves around alleged import misclassifications, which may have implications on how Volkswagen plans its manufacturing and import strategies going forward.

While India’s EV segment is growing quickly, with players like Tata, MG, and Mahindra actively launching and selling electric models, Volkswagen is falling behind. Stricter environmental regulations and emission standards are expected to pressure the automaker into accelerating its EV rollout in India. The brand does have the necessary technology, thanks to its global EV developments, but adapting and scaling that for the Indian market will require focused investment and local partnerships.

Despite its current challenges, Volkswagen’s long-term vision still rests heavily on the EV transition. The automaker has made clear commitments toward electrification and aims to be a global leader in the segment. The financial strain it faces now may just be part of a larger investment cycle, with potential returns to be seen over the next few years as EV adoption accelerates worldwide.

In summary, Volkswagen is in the midst of a demanding transition phase. Sales are increasing, particularly in Europe, where its EVs are gaining traction. However, the financial cost of this shift is impacting profits. Competition in markets like China is strong, and the Indian market remains underdeveloped for VW in terms of EVs. How well the company manages this transformation—balancing innovation, cost control, and market responsiveness—will define its success in the next era of mobility.

Article By
Sourabh Gupta

The iconic name in India’s automotive history – Tata Sierra – is returning soon! And, this time, in an all-electric form. But one of the things that SUV enthusiasts want to know is whether the tesla models in india will be a 7 seater. Dispelling the confusion, the company has announced that the upcoming Sierra EV will not have a room for 7 passengers. Instead the Lyriq will come in two different seating configurations depending on buyer perspective, a regular 5-seater and a 4-seater lounge variant.

The 5-seater format is likely to find favour with families and urban buyers in need of day-to-day use and access to Tata’s latest EV tech. On the other hand, the 4-Seater Lounge is a luxury offering for those who are driven and prefer comfort over the features of the 3-Seater. In addition, the rear seating area has been developed to offer passengers a high level of relaxation and personal space comparable to that found in the best-selling sedans.

What distinguishes the 4-seater lounge edition is the further emphasis on the individual seatings’ comfort level. Instead of a conventional bench seat in the rear, the lounge model is fitted with two individual rear seats with some nice comfort features to boot. These consist of sliding and reclining elements, ottoman-like leg rests, and concave seats with perforated surfaces. At the back, you should expect ambient lighting, personal entertainment screens, fold up table trays, and other more creature-comfort items that simulate the “business-class” experience on the ground.

The idea behind it is a response to changing trends in automotive and especially with urban luxury consumers there is a growing interest in the electric vehicle as a statement of style, sustainability and exclusivity. With such a premium offering, Tata is hoping to change the way EVs are perceived in the Indian market—as not just greener options, but as aspirational lifestyle products.

For the people who remember the Tata Sierra in its first incarnation, this is a dramatic change. The iconic Sierra made its debut in 1991 as a robust lifestyle vehicle with a distinctive design of large rear fixed glass windows, and a 3-door body style. The older design featured two front bucket seats and a three-passenger rear bench that seated three people as snugly as it also seated three. It had no rear doors and getting into the rear seat required tilting the back of the front seats. Though basic with regards to cabin trim, it was well outfitted for its era with power windows, AC, and power steering.

The new Tata Sierra EV, however, does come thoroughly modernised with not much in common with the older crop. It has embraced a design aesthetic that is a departure from rugged utility and towards graceful and tranquil interiors. Based on living room aesthetics, this EV will offer plush materials and layered textures with purposeful design. A suite of digital display features that includes a touchscreen infotainment system and a fully digital instrument cluster takes the SUV on par with global trends for electric vehicle design.

The Sierra EV will also be equipped with premium amenities such as a panoramic sunroof, ambient lighting, wireless charging, and perhaps distinct features like moss panels or ornamenting inserts. Attention to detail and relaxation are further expressed in the brand’s ambition to deliver a calm and visually beautiful space within the car.

Tata Motors has also suggested that an ICE-powered avatar of the new Sierra is also on the anvil. This will be in response to a wider reach of market that is not yet prepared to transition to electric but still want to experience the heritage and looks of the Sierra brand. The ICE version is expected to learn a lot of the styling and interior features from the EV variant, making it a preferred choice for enthusiasts of conventional engine.

Addressing the market launch, the Tata Sierra EV might also see the light of the day in the new market around August 2025. The base price is expected to vary somewhere between Rs. 25 – 30 lakh (ex-showroom). The Sierra EV, with its price range and unique positioning, is expected to serve buyers who are looking to purchase a premium locally-produced electric SUV blending nostalgia with advanced features.

So, in conclusion, the Tata Sierra EV isn’t to be a seven-seater, though the two targeted forms do something for both the practicalist and a luxury-end customer. Some of you may be disappointed with no 7-seater option, but this aggressive approach by Tata should help set a new record in terms of the Indian electric SUV benchmark as they seem more focussed on offering a more comfortable and premium experience.

Article By
Sourabh Gupta

Several carmakers are set to roll out a slew of fresh electric vehicles to the Indian market in the next few months. These next EVs occupy a range of market segments, from small SUVs up to full-size MPVs and even a sporty convertible, appealing to an array of would-be buyers with varying requirements and tastes. Leading the charge is MG Motor, which has been followed by home-grown automakers such as Tata Motors, Mahindra and Maruti Suzuki, with promise of feature-laden and high-range electric vehicles to cater to the increasing clamour for cleaner mobility products.

Among the most interesting EVs on their way is the Windsor EV from MG Motor, due mid-year. The crossover vehicle will be equipped with a 50.6 KWh battery which is expected to cover around 460 KM in single charge. Engineered for urban and long-haul driving, it also will include advanced driver assistance systems, infotainment options and flexible seating ensembles that position it as an upscale option in the crossover segment. There will be a slight price increase because of the new items.

MG is also getting ready to introduce its M9 Electric MPV in the third quarter. A family- and group-friendly, luxurious people carrierBuilt to transport with comfort and ease The M9 will have a 90 kWh battery under the hood and should achieve a range of about 430 kilometers. Spacious and luxurious inside, the Enverge boasts a comfortable and quiet ride, while its full-electric drivetrain speaks to a greener way of traveling.

There’s a word out there that Maruti Suzuki could take a giant leap in to the world of EVs with a compact electrified SUV lately in the year, named e-Vitara. Based on the HEARTECT-e platform, the SUV will get features like 10.1-inch touchscreen, digital driver’s display along with an ADAS suite for added safety. It’s expected to be available with two battery options, giving it a range of up to 500km. Sitting as a rival to other popular EVs in the electric SUVs segment such as the Tata Curvv EV and the Hyundai Creta EV, it will be India’s — and Maruti’s — first all-electric passenger vehicle.

The launch of the Tata Harrier EV is also eagerly anticipated with an expected release in the second half of 2020. Unveiled previously at an auto show, the Harrier EV is likely to get dual-motor all-wheel drive technology and offer a driving range of around 500 kilometers. Sitting on Tata’s Gen 2 EV architecture, the mid-size SUV will offer a mix of off-road performance and luxury. On the inside, the Harrier EV is expected to have a plush cabin with top-notch material, a large touchscreen panel, and a range of safety features.

MG Motor intends to create a storm in the sports car segment with its all-electric convertible, the Cyberster. This is a car that’ll tug at the heartstrings of hobbyists in search of a zero-emission buzz. Boasting a bold design with eye-catching scissor doors, coupled with a strong powertrain, the Cyberster will accelerate from 0-100kph in under five seconds. With an efficiency more than 500 kilometers, then it will bring not only speed but also the placement for daily use.

Last but not the least, Mahindra will bring out the XUV 3XO EV by the end of this year. The mini-SUV will allow two battery choices: a 34.5 kWh battery with a range up to 375 km (233 miles) and a 39.4 kWh version with a maximum 456 km (283 miles). Loaded with high-end features such as a 10.25-inch infotainment screen, wireless charging and a 360-degree camera, it is designed to get noticed in an overcrowded electric SUV marketplace. And with the aggressive pricing and state-of-the-art features, it will be a rival for the Tata Nexon EV, which is currently the sturdiest player in this segment.

The EV scene in India is certainly changing with increasing choices for the consumer spread across price points and even personal preferences. Whether it’s performance, practicality or premium comfort, the large array of electric vehicles soon to be available in our country offer something for all, hence fast-tracking the progression towards a greener, cleaner mobility future.

Article By
Sourabh Gupta