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Skoda aims at mass-market electric car segment in India, mulling various options

Skoda Auto India may follow in the footsteps of Volkswagen AG by partnering with a local company in the country for its mass-market electric car dream
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Skoda Auto India may follow in the footsteps of Volkswagen AG by partnering with a local company in the country for its mass-market electric car dream.

Skoda Auto India plans to enter the mass market electric car segment in the country. The Czech carmaker under the Volkswagen Group is exploring multiple avenues for that, revealed the auto company's management board member Martin Jahn. He has reportedly told PTI that the automaker is mulling the idea of partnerships with local companies for economies of scale. This comes at a time when Skoda has confirmed that it is planning to bring the premium electric SUV Enyaq to India, which is currently being tested in the country.

Initially, the carmaker is planning to bring its electric cars to India as Completely Built Units (CBU). Later, the car manufacturer is aiming to assemble the electric cars locally. Also, the Czech OEM has revealed that it will launch a compact SUV in India, which will compete with rivals such as Tata Nexon, Maruti Suzuki Brezza, Hyundai Venue, and Kia Sonet among others. Considering the rapidly rising demands for compact SUVs and the practicality and economic viability of a compact electric SUV, we may see the automaker bringing in an all-electric variant of the upcoming SUV that will share its platform with Skoda Kushaq.

Skoda Auto India exploring multiple options

Speaking about the EV plans of Skoda Auto India, Jahn reportedly said that the OEM is exploring all the options. "We are exploring all the options. I am not at liberty to give you any details on this because no decision has been made. We are looking at everything we want to bring volume electric car to India," he said further adding, "How and when we are going to do it, we do not know yet. We are looking at the options that would be the best for India. But we of course want to participate in the growth of the electric (vehicle) market in India."

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When asked if Skoda Auto India is looking for partnerships with local companies for the mass-market electric car project, Jahn said, "We are exploring all the options for the entry of the volume electric market." Speaking about the importance of having a local partner, he reportedly said, “From a strategy point of view, it's important to determine what is the best way which we're exploring at the moment. The options are (whether) doing it alone (or) doing it with a partner in various kinds of partnerships."

Watch: Skoda Enyaq EV makes India debut at the Bharat Mobility Global Expo

Is Skoda following in Volkswagen's footsteps?

Interstingly, earlier this month, Skoda Auto's parent company Volkswagen Group, signed an agreement with Mahindra & Mahindra for a supply of electric vehicle components under their joint vision for electric mobility collaboration. Under this agreement, Mahindra will become the first external partner to use Volkswagen's groundbreaking unified cell concept, the core element of the auto giant's battery strategy.

Skoda revealed that clarity in the Indian government's policies will make it better for the auto company to plan a roadmap for its electric mobility journey. "I have observed globally that these policies are changing very quickly. The governments are changing them for many reasons. We want to have from every government as much clarity as possible, but we are also realistic and we know that these policies will be developing. So the more clarity we have, the better for us," he reportedly noted.

Skoda Auto India's EV sales projection

When asked how much sales volume the electric vehicles are expected to contribute to Skoda's total retail numbers in India in future, Jahn reportedly said, "We will have to see that. The electrification just started and also there can be some presumptions. We will see."

In Europe, he reportedly said, "We are now around 10 per cent of electric cars in our portfolio and according to the current plan in Europe, it should increase and we should be by between 50 per cent to 70 per cent electric in 2030 given the presumption that Europe goes full electric in 2035."

First Published Date: 29 Feb 2024, 09:51 AM IST
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