Volkswagen charged up with new electric roadmap

It was precisely three weeks ago when Volkswagen unveiled the chassis of its new electric model family ID along with the MEB (modular electric drive matrix) platform.

Clearly, this is a big step for the German brand as it strives to grow its electric vehicle portfolio to selling one million cars by 2025. Will this mean that it is the beginning of the end of the internal combustion engine?

“We still need the modern combustion engine as a bridge into the emission-free age. Without efficient and clean gasoline and diesel engines of the latest generation, we will not reach the climate targets,” responds a Volkswagen AG spokesperson.

“That is why we continue to invest in the ongoing development of internal combustion engines in the next years — and we still see great potential in improving their environmental friendliness,” he continues.

According to the spokesperson, hybrid technology is also an important component of Volkswagen’s progressive drive strategy for the future. “It encompasses the coexistence of state-of-the-art petrol, diesel and CNG engines, innovative hybrid systems and pure electric drives with long ranges and will help us to achieve the CO2 fleet emissions of 95 g/km required for the EU in 2020,” he says.

Exciting prospects

Steffen Knapp, Director of Volkswagen Passenger Cars India, is as excited about the electric initiative that will “revolutionise” the business. For one thing, the car does not have to go to the workshop “so many times” as is the case now.

Two, there will be no need for oil or washing with hardly any need to change spares. “All the classical mechanical work does not exist anymore (with electric). The dealer model will completely change too,” says Knapp.

Of course, all the action will be confined to Europe, the US and, of course, China, which is already the big daddy of electric mobility across the world. Sure, Norway is a strong e-market as also the Netherlands but China is just infinitely bigger as a car market.

Knapp readily admits that this is a “completely different era” for him as an automotive professional since the role of the car has grown beyond merely being a mobility service provider. The overall ecosystem is changing rapidly with the car of the future now set to take over a host of responsibilities for its owner. “For VW, this is like moving from the Beetle to Golf, which was a very big step and now to ID/electrification,” he says.

India has to wait

Yet, it will take a while before India can join the party even while the Centre is pushing the cause for electric mobility in a big way. However, idealism cannot translate into effective implementation simply because there are a host of hurdles to overcome.

As Knapp explains, China gives heavy subsidies for electric and a “kick to invest” which includes sops like free number plates, no registration tax, etc. Apart from this, the country is fuelled by a desire to be the top player in e-mobility and is going flat out in this direction.

“Likewise, once you get things in place in India like subsidies, electrification will come in quickly,” adds Knapp. This means working towards a far more “global orientation” as is happening with the move to allow manufacturers to get in 2,500 cars into the country without homologation.

This has become a contentious issue and it remains to be seen how it eventually pans out. The next challenge is to revisit rules on engine displacements and the tax sops for sub-four-metre cars. From Knapp’s point of view, both merit serious review in the context of imminent changes like Bharat Stage VI emission norms, which come into effect from April 2020.

Without these rules (on length and engine capacities), he argues, India could become even more global and confident as a key producer of cars. With clean air now becoming the priority, there is no reason why bigger cars cannot contribute to the emissions challenge with superior technology.

For now, the other big challenge is the rise in petrol and diesel prices, which could be a dampener for customers. In this backdrop, electric could ideally be the best option except that it is easier said than done without subsidies and supporting infrastructure for charging.

Knapp believes electric is ideal for cities like Mumbai and Delhi where distances can be covered comfortably. It is also the best bet especially when festive occasions like Diwali do little for the cause of the environment. “In my personal opinion, cities are better off with electrification and the timing is just right with the levels of pollution growing,” he says.

From VW’s point of view, electric will have to wait for a while since the group has its hands full with India 2.0 where Skoda is leading the new rebooted innings. This is far more important right now since this project is intended to mark a turnaround chapter for the group in India.

Yet, there is no taking away the fact that there are some exciting things happening at a global level in the electric roadmap. The charging infrastructure model, IONITY, has the quartet of Ford, BMW, Daimler and VW participating with plans to have 400 charging stations in place across Europe by 2020.

“Electrification represents an enormous opportunity for us in brand because we are delivering the future. Spending time would be so great in the car especially in Mumbai,” says Knapp, an obvious reference to the comfort within especially when one is stuck in traffic and can still be connected to the world.

Post ‘dieselgate’ turnaround

Clearly, the move to electric is a dramatic turnaround for a company that was in the midst of a diesel scam in 2015 from which it has managed to recover slowly and steadily. As observers say, perhaps a crisis like this was necessary to give a shock to VW and act quickly with the new MEB and a host of other initiatives.

Going forward, the company will have to think think differently in terms of attracting new talent. Young people in Europe will need to be convinced that this German brand is keeping pace with the times. This is where electrification could pave the way for a modern approach and could even lead to VW becoming more multicultural with new hires coming in from across the world. Back home in India, something similar could happen with India 2.0 as diversity will drive change next decade.

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