Skoda entry level EV to be made in India for domestic and export markets
Skoda Auto Volkswagen India is setting its sights on the growing electric vehicle market in India, with plans to introduce an entry level EV tailored specifically for the Indian market. The German automaker aims to tap into the mass market segment while also exploring export opportunities.
Piyush Arora, MD & CEO of Skoda Auto Volkswagen India, outlined the company’s strategy for electrification in India. Arora emphasised the importance of both India-specific and global products in their EV lineup.
The company is evaluating a localised product to cater to the entry-level EV segment in India, which would require substantial investments. Arora mentioned that Volkswagen Group would need to invest “in triple-digit million euros” to introduce EVs in India and that substantial volumes would be necessary to justify such investments. Hence, the export potential of the made-in-India EV is crucial and feasibility analyses are underway to explore export opportunities.
Exports have been a significant aspect of Skoda Auto Volkswagen India’s presence in the country. Arora highlighted the company’s successful leveraging of India’s automotive ecosystem for exports, with around 30 percent of their total production being exported in CY23. The company aims to further expand its export footprint, particularly in South East Asia and GCC countries.
The South East Asia market holds promise for EV exports from India, with customer preferences aligning closely between the two regions. Skoda Auto Volkswagen India sees potential in tapping into these markets to achieve economies of scale. Leveraging the Volkswagen Group’s global strength and distribution network, the company aims to export made-in-India cars to suitable markets worldwide.
While they haven’t revealed any body type of the upcoming EV yet, we believe it is likely to be a compact SUV, which is also expected to come with petrol engine options according to some speculations.