Škoda Shifts to a Flexible Multi-Fuel Play as EV Demand Lags, Geopolitical Risks Rise: Ashish Gupta

Amid a slower-than-expected electric vehicle (EV) transition, Škoda Auto India is looking at a multi-fuel powertrain strategy, Brand Director Ashish Gupta said. “No company in the world has the resources to invest in every technology. You have to take your bets but also be flexible enough to change if the market doesn’t evolve as expected,” Gupta told Autocar Professional.

While reiterating that electrification remains the long-term direction, largely driven by regulation, Gupta acknowledged a growing mismatch between policy push and market readiness. “We have clearly seen that demand is not matching up to where regulators want us to go,” he said.

Škoda, he said, is steering away from a single-technology approach and instead building a portfolio of powertrain options tailored to Indian conditions. This includes a continued focus on petrol engines, evaluation of CNG as a more accessible entry point, a calibrated EV rollout, with other options, including diesel and hybrid, remaining “on the table”.

While the company leans into a flexible, multi-fuel pathway to navigate an uneven transition to electrification, Gupta pointed out that external shocks like geopolitical conflicts could further complicate the operating environment, reinforcing the need for such adaptability. "Our production has remained stable so far, but every day the situation prolongs, it does bring potential future risks," he said.

Gupta also flagged geopolitical uncertainty as a key variable shaping buyer behaviour, noting that while periods of instability may push consumers to explore alternatives like EVs, it remains unclear whether this translates into sustained demand. "Rising crude oil prices could weigh on consumer sentiment, and in situations like these, consumers tend to delay their purchases," he said.