Škoda Auto Volkswagen India plans to launch entry-level electric car soon

German auto giant Volkswagen is planning to launch an entry-level electric vehicle in India in the next few years. The carmaker revealed some details about its upcoming electric car for India at the Bharat Mobility Global Expo event which kicked off today (February 1). According to the carmaker, penetration of electric vehicles in India is expected to pick up by 2030, which makes it an attractive market for global players like the Volkswagen Group. Skoda Auto, part of the group, has already announced that it plans to launch its first EV in India this year.

Volkswagen currently does not offer any electric cars in India. However, in global markets, it has an array of EVs on offer with the ID.2 being its entry-level electric car. The carmaker recently teased an upcoming entry-level electric SUV as well, though it is not clear if it's the same model meant for launch in India.

During the Bharat Mobility Global Expo, the carmaker revealed its intention to enter the EV fray in India. Piyush Arora, CEO at Skoda Auto Volkswagen India, said, We are evaluating which VW Group platform can be best adapted to build a compact electric SUV in India," said Piyush Arora, CEO of Skoda Auto Volkswagen India. The new electric vehicle (EV) would need the volumes to justify a "three-figure million-dollar investment", said Arora."

Volkswagen hinted that it could manufacture its upcoming electric car in India. The carmaker considers India as one of its global export hubs. "The regulatory and safety changes in India is making the country more globally competitive. Earlier, we needed more effort to produce cars for export from India," Arora added. Volkswagen's exports from India increased by around 80 per cent while Skoda, part of the group, saw its exports multiply nearly four-fold in this fiscal year. The carmaker is currently testing the Enyaq EV in India with its expected launch to take place some time this year.

Also watch: Skoda Enyaq EV makes India debut at Bharat Mobility Global Expo

Volkswagen foray into EV segment in India will depend a lot on the tax structure. Currently, India levies tax of five per cent on locally manufactured electric cars. The import duties on EVs are much higher. The carmaker said it is keen to introduce hybrid vehicles if it gets backing from the government. Tax charged on hybrid cars in India is still high at 43 per cent.