CAFE III norms push Skoda to evaluate cleaner technologies while strengthening its India network.
20 Jan 2026 | 605 Views | By Prerna Lidhoo & Hormazd Sorabjee
Skoda Auto is evaluating a multi-powertrain strategy for India, including electric vehicles and CNG, as it navigates regulatory pressure, global uncertainty and shifting consumer preferences, Martin Jahn, board member for sales and marketing at Skoda Auto, told Autocar Professional.
Jahn acknowledged that while the company needs more products ...
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Skoda Auto is evaluating a multi-powertrain strategy for India, including electric vehicles and CNG, as it navigates regulatory pressure, global uncertainty and shifting consumer preferences, Martin Jahn, board member for sales and marketing at Skoda Auto, told Autocar Professional.
Jahn acknowledged that while the company needs more products for India, the rapidly changing global automotive landscape has made decision-making more complex. “For the future, we need more products. But the world is now very volatile and we are observing the transformation to electric, because China is very strong and keep pushing. The US made a complete turnaround, going away. Europe slowing down a little bit. So now, we know that we need an electric portfolio for India," he said.
However, Jahn said the group is still evaluating the most viable approach for India and is not ready to commit to a specific solution yet. "We are still finding and looking for the best solution. So I cannot give you an answer today, but we all know that we need more products and we are working on it," he said.
CAFE III Deadline Adds Urgency
With tighter emission norms under CAFE III approaching, Skoda faces mounting pressure to introduce cleaner powertrains or risk penalties. "Of course, we need to find this right solution at the right time. The focus remains on offering products that align with Indian customer expectations in terms of size, design, and features," he said, adding that Kylaq was the right approach in the right segment.
Open to Partnerships
On whether Skoda would develop future solutions independently or with a partner, Jahn said all possibilities remain open. "The question is whether we do it alone or with a partner. Everything has pros and cons. But we're open and flexible and we are looking for the best solution because the world is so volatile, maybe sometimes it's better to calm down and take a moment before you make a decision," he said.
Jahn noted that Skoda is facing challenges across geographies, including China and Europe, and must prioritise investments accordingly. “We have challenges everywhere. We have challenges in China as well. We have challenges in Europe. We have challenges in India. It's just a question of prioritizing and deciding," he added.
The company is also watching the progress of a potential free trade agreement between India and Europe, which could influence future decisions.
Focus on Dealer Network
Despite the uncertainties, Jahn said Skoda is currently in a strong position in India, having recorded its best-ever year. "We are now really enjoying the moment. We just doubled the sales last year, which is not easy for any brand," he said.
The company is now focusing on strengthening its dealer network and improving after-sales perception. “ŠKODA had an image of having too expensive after sales, which is not the case anymore. Improving service quality and brand loyalty is a key priority," he adds.
The company said that the new model lines will help grow its market share and volumes in India.
MQB Platform Future and Hybrid Potential
Jahn said Skoda will continue to enhance products based on the MQB platform, including adding features relevant for India. “There will be product enhancements. There are some important features that we need to bring to the Indian market. So MQB still provides a space for product improvement which we will bring," he said. However, he clarified that hybrids are not compatible with the current MQB-A0-IN platform.
Globally, Skoda is developing a full range of hybrid powertrains, but cost remains a key consideration for India. "Globally, we are developing a full range of vehicles, mild hybrids, hybrids, plug-in hybrids, full electric vehicles. Sometimes the best technology comes also with the highest cost. So we have to evaluate that. And also for India we have to evaluate everything on the price sensitivity of the market," he said.
Currently, Skoda’s India lineup is petrol-only, but Jahn confirmed that alternatives are under evaluation, including CNG. “As I said, we are looking at everything. So, CNG I think is a possibility," he said.