Skoda Auto Volkswagen India Private Limited (SAVWIPL) is stepping up its India focus with the expansion of its research and development footprint in Pune, a move aimed at strengthening local engineering capabilities while also supporting global product development.

The company has inaugurated a new wing at its Technology Centre Pune (TCP) in Baner, positioning the facility as a key part of the Volkswagen Group’s global innovation network. Designed to house more than 250 engineers, the new centre will work on advanced vehicle development, platform engineering, software, and sustainable mobility solutions.

“For utilising the Indian ecosystem to the maximum possible potential, there are 3 aspects to addressing that. First is, of course, product development; quality and quality process support have to be there, and then manufacturing. We have established good manufacturing capabilities over the last 2 decades and have very good processes in our factories as well as with our suppliers. The area which we are focusing on right now is product development, and our next stage of localisation, as well as adapting to Indian products, will come via focussing more on India-engineered options,” Piyush Arora, Managing Director and CEO of SAVWIPL, told Autocar Professional.

He added that the company was scaling up its technical centres and is going to gradually increase its engineering capabilities from 400 to 700 employees to cater to that requirement. “We’ve recently started a new office in Pune, and I’m happy that the group is supporting this initiative, and this will help us develop competencies in India so that we’re able to develop products for India and also, in the future, we’re able to go global,” he said.

The Baner facility complements SAVWIPL’s existing engineering base in Chakan. The expansion is aligned with the company’s broader strategy of building in India not just for the domestic market, but also for global applications. The development marks the next phase of localisation for the company, with a sharper focus on India-led engineering. It also reinforces India’s role within the Group as the “Voice of India” for product development, helping tailor vehicles more closely to local market needs while building capabilities for exports.

Since its inception in 2019, the Technology Centre Pune at Chakan has played a central role in developing India-specific models such as the Volkswagen Taigun and Skoda Kushaq, along with the sub-4-metre SUV, the Skoda Kylaq.

With the latest expansion, SAVWIPL is also scaling work in key areas such as connected technologies, electrification, and cost-efficient engineering. The move underscores a broader push to deepen local talent and infrastructure, while positioning India as a strategic hub for both domestic innovation and global product development within the Volkswagen Group.