India an important pillar for Skoda’s future growth: Klaus Zellmer

Skoda Auto continues to explore opportunities in India to expand the country’s scope in its global operations. In an exclusive interview with Autocar Professional, Klaus Zellmer, Skoda Auto’s global CEO, says India will be an important pillar of growth for the company in the future, and that it will continue to invest in the market “with or without a partner”.

Apart from adding new products to its portfolio to expand the addressable market, Skoda Auto expects the country to play a more significant role as an export hub.

What is your view on the current setup in India?

India is a big challenge. The market is so dynamic that new products and features with a very competitive price tag are needed, so we are working on all of them. 
A lot is happening in India, so it is unsurprising that we have frequently come to the country.

We have progressed well on our compact SUV. We wanted to introduce a very competitive product in the mainstream market, and I think we have been successful. We will be bringing in BEVs. We are studying the new EV policy to define the next step for our future products (Enyaq, Elroq, amongst others).

What is the future of BEVs, especially in India, given that Europe is rethinking the transition to a full-BEV future?

We must find a way to involve everybody in this conversation—the government, the regulators, the carmakers. I am convinced that the eventual path is BEVs, but along the way, we need multiple fuels to reduce emissions. It is not only about new cars; there are many [older] internal combustion engine (ICE) cars running on the road, and we must also look at their CO2. This is the problem in Europe, nobody cares about the existing car park.

I keep explaining to everybody that by 2035, we will have about 290 million cars in Europe, and 200 million will be ICE—if we don't start now, we will try to find a way.
For India, too, it is a good way to look at gas, flex fuel and synthetic. You must open rooms for universities and petroleum companies to find a way to reduce CO2.

Hybrids and plug-in hybrids will play an important role. Now, nobody cares. We have an EV-only range of over 100km on Kodiaq for city usage and good fuel efficiency on the highways. Range Extenders, too, are an interesting concept for the future.

What next for Skoda-VW in India?

We are following a couple of directions. One is to follow up with the current setup and do it better, the other could be to grow with someone. I cannot disclose anything about it at the moment.

The benefits of the partnership are apparent: it will help us be more in tune with the Indian culture and market and get the product right. India will be an important pillar for the future. With or without the partner, Skoda Auto will continue to invest in the country's growth. 

You have not utilised India as an export hub as effectively as expected. What do you think is the reason?

The market dynamics are challenging us to be better. Kushaq and Slavia are already three years old, but we just launched special models to boost demand, and they are working. We need to update them and constantly add additional features.

We have had a good start with the Kylaq, which will be relevant to a few more export markets. A nice German quote says, “Bait has to be liked by the fish, not the fisherman." We really need to embrace that philosophy if we are to be successful in India. 

Is the road to carbon neutrality long?

A year ago, people said there would be 100% BEVs in Europe by 2035, and by 2040 in India. This is now a question mark.