Skoda to Bring EVs to India in Limited Batches Next Year, Hybrid Strategy on the Backburner

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 Ashish Gupta, Brand Director, Skoda Auto India, 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 India.

“A lot of things are under discussion. So, for meeting the CAFÉ norms there are a lot of opportunities available along with electrification which has to be the cornerstone of meeting all compliance regulations. So that is something which we are aggressively working on," Gupta told Autocar Professional.

He added that the company needs an electric car in its portfolio since adoption has grown in the last 3 months owing to increasing fuel prices. 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 next year.

"It may not be a local EV but yes we just had 2 blockbuster launches globally of the Epiq and the Peaq. The Elroq is the best selling EV in Europe. So these are opportunities available to us in limited batches," he said. He added that in the current 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 adds. 

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 and not chase mass-market volumes. 

Hybrid Loses Some Appeal for Skoda

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 said I would take a bet on hybrid more than EV. But the tax structure has not helped anybody. In the last one year, pure hybrids have stayed at 2% of the market. They have not gone beyond that. So, I am not sure whether hybrid is the right way to go. And what the last 6 months have also shown us that people are more than willing to go for EVs now," he said. 

The company’s hesitation is also influenced by the current trade and taxation structure. 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 if I want to bring the cars from the global portfolio with the contours of the FTA as they are petrol and diesel will definitely be an opportunity. Diesel opportunity opens up, HEVs and electrics do not have unfortunately any benefit," he said. 

Gupta said the brand’s positioning in India is a bit above mass and below luxury. "That's our natural positioning that's why customers buy us as well and if we try to sell to cheap customers don't buy us. If we try to sell to expensive customers don't buy us. So we have to stay true to our positioning and how customers see us," he said. 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.