Pune, October 30, 2026: Škoda Auto Volkswagen India Private Limited (SAVWIPL) has signed a Memorandum of Understanding (MoU) with the Automotive Research Association of India (ARAI) to strengthen India’s automotive safety testing ecosystem through the development of an advanced crash testing facility in Chakan, Pune.
The MoU was exchanged in the presence of Shri H.D. Kumaraswamy, Hon’ble Union Minister of Heavy Industries and Steel, Government of India, along with Piyush Arora, Managing Director & CEO, Škoda Auto Volkswagen India, Dr. Reji Mathai, Director, ARAI, and senior representatives from both organisations.
Advanced Crash Testing Facility Planned in Chakan
Under the agreement, SAVWIPL will transfer a strategic land parcel to ARAI, enabling the establishment of a state-of-the-art crash test facility focused on future mobility technologies, including:
- Battery Electric Vehicles (BEVs)
- Internal Combustion Engine (ICE) vehicles
- Emerging vehicle safety systems
The new facility will significantly strengthen India’s domestic vehicle safety research, testing, and validation capabilities.
It is expected to increase the country’s capacity to conduct:
- EV-specific crash and safety tests
- Advanced vehicle validation programmes
- NCAP assessments required for international export markets
- Future Bharat NCAP-related evaluations
Supporting India’s Automotive Safety Roadmap
Commenting on the development, Shri H.D. Kumaraswamy, Hon’ble Union Minister of Heavy Industries and Steel, said:
“Expanding local R&D and safety testing infrastructure is essential as India’s automotive sector advances. This initiative between ARAI and Škoda Auto Volkswagen India strengthens domestic testing capacity for electric vehicles and safety standards. By establishing this facility in Chakan, we are supporting the faster implementation of future Bharat NCAP requirements, helping address India-specific road safety challenges. It will also strengthen the capabilities of OEMs in India to develop vehicles that meet stringent export market requirements.”
Enhancing EV Development and Vehicle Validation
Located adjacent to SAVWIPL’s manufacturing facility in Chakan, the expanded ARAI facility is expected to increase testing capacity and support faster development cycles for:
- Battery Electric Vehicles (BEVs)
- Advanced safety technologies
- Next-generation mobility solutions
The facility aims to reduce testing bottlenecks and provide greater support for vehicle manufacturers developing products for both Indian and global markets.
Commitment to Raising Safety Standards
Piyush Arora, Managing Director & CEO, Škoda Auto Volkswagen India Private Limited, said: “Vehicle safety and local engineering capability are central to our operations in India. When ARAI required land for a specialised crash test facility adjacent to our Chakan plant, we adjusted our future expansion layout to support their request.”
He added: “As the company whose INDIA 2.0 vehicles were the first India-made cars to achieve 5-star Global NCAP ratings for both Adult and Child Occupant Protection, we have always believed that raising safety standards benefits the entire industry. This strategic partnership will help accelerate the development of safer vehicles in India by shortening EV development timelines, strengthening Bharat NCAP testing, and expanding the country’s overall automotive engineering capabilities.”
Building Long-Term Testing and Validation Capabilities
Dr. Reji Mathai, Director, ARAI, said: “The future of mobility will be defined not only by innovation but also by the strength of the ecosystem that enables safe, sustainable, and globally competitive vehicle development. This MoU represents a strategic milestone in India’s automotive testing and safety infrastructure.”
He further added: “As vehicle technologies evolve rapidly, the need for advanced validation, crashworthiness assessment, and regulatory compliance capabilities will continue to grow. We view this partnership as an important step towards building world-class capabilities that will serve the mobility sector for decades to come.”
About Škoda Auto Volkswagen India Private Limited (SAVWIPL)
Škoda Auto Volkswagen India Private Limited:
- Oversees the Indian operations of six Volkswagen Group brands: Škoda, Volkswagen, Audi, Bentley, Lamborghini, and Porsche
- Began operations in India over 25 years ago
- Operates manufacturing facilities in Chhatrapati Sambhajinagar and Chakan, Pune
- Has a combined annual production capacity of 315,000 units
- Has exported more than 725,000 vehicles to over 40 countries
- Crossed 2 million locally produced vehicles in 2025
- Achieved more than 600,000 units from locally developed INDIA 2.0 models including Kylaq, Kushaq, Slavia, Taigun, and Virtus
- Operates nearly 700 customer touchpoints across India
- Employs more than 4,000 people
- Has been recognised as a Top Employer and among HR Asia’s Best Companies to Work for in Asia for three consecutive years
The company continues to focus on sustainable mobility and a balanced strategy across ICE and BEV technologies.
About ARAI
Established in 1966, the Automotive Research Association of India (ARAI) is one of India’s leading automotive R&D organisations.
The organisation:
- Was established by the automotive industry in collaboration with the Government of India
- Operates under the Ministry of Heavy Industries
- Is recognised by the Department of Scientific and Industrial Research (DSIR)
- Holds NABL accreditation
- Is certified under ISO 9001, ISO 14001, ISO 27001 and ISO 45001 standards
ARAI provides services across:
- Testing and Validation
- Certification and Homologation
- Design and Development
- Research and Development
- Engineering Consulting
- Standardisation and Harmonisation
- Education and Training
The organisation has also developed indigenous automotive technologies, databases, software tools, and testing facilities.


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