Skoda Auto India plans to bring electric vehicles from its global portfolio to India in limited volumes next year as the Czech automaker looks to establish its presence in the EV market. According to Skoda Auto India’s brand director Ashish Gupta, the company needs an electric vehicle in its portfolio not only to meet future regulatory requirements but also to remain relevant as EV adoption gathers pace in the country.
- Rising fuel prices accelerated EV adoption, necessitating an EV in Skoda’s portfolio
- Peaq flagship electric SUV being considered for India
Skoda India to bring EVs: Additional details
“A lot of things are under discussion, so, for meeting the CAFE norms, there are a lot of opportunities available, along with electrification, which has to be the cornerstone of meeting all compliance regulations. That is something which we are aggressively working on,” Gupta told our sister publication, Autocar Professional.
Gupta added that the company needs an electric car in its portfolio as adoption has grown in the last few months owing to increasing fuel prices. “The overall market is growing much faster than what was planned, so our EV plans cannot be changed overnight just because the market has suddenly moved to EVs. High-volume EVs can only be introduced when there is localisation, and that is something we are working on heavily,” he stated. While Skoda has yet to announce a specific locally manufactured EV for India, Gupta confirmed that the company plans to introduce EVs from its global line-up early next year.
“It may not be a local EV, but yes, we just had two blockbuster launches globally of the Epiq and the Peaq. The Elroq is the bestselling EV in Europe, so these are opportunities available to us in limited batches,” he said. He added that, in the current tax duty structure, it will not be possible to bring them at price points that will get volumes. “But definitely, we need to urgently showcase our EV credentials and the proof point to India,” he added.
This will allow Skoda to establish a presence in the EV market without immediately committing to the significant investment required to localise an electric model. With imported EVs still facing a challenging cost structure, Gupta said the initial objective would be to demonstrate the brand’s technology and capabilities rather than chase mass-market volumes.
Skoda India’s hybrid ambitions in low gear
Skoda’s approach to hybrids, meanwhile, appears less certain. Gupta said the company had previously viewed hybrids as a potentially stronger opportunity than EVs in India, but market data over the past two years has changed his assessment. “Two years ago, I would have bet on hybrids more than EVs, but the tax structure has not helped anybody. In the last year, pure hybrids have stayed at 2 percent of the market and have not gone beyond that. So, I am not sure whether hybrid is the right way to go, and what the last six months have also shown us is that people are more than willing to go for EVs now.”
The current trade and taxation structure also influences the company’s hesitation. Gupta said the India-EU Free Trade Agreement, while potentially creating opportunities for imported petrol and diesel models, does not provide similar benefits for EVs and hybrid electric vehicles. “I think from a global portfolio point of view, and bringing cars from there with the contours of the FTA as they are, petrol and diesel will definitely be an opportunity. Hybrid electric vehicles (HEVs) and electrics do not have any benefit, unfortunately,” he remarked. The immediate priority, Gupta adds, is to get EVs into the country as the company continues to assess which powertrains can deliver the right combination of regulatory compliance, customer demand and commercial viability.
With inputs from Ketan Thakkar
Dipan Sur
Dhruv Dhaka
Viraaj Bhatnagar
