Skoda Aims to Expand Business in India with New Models and Local Partnership. 

Akash Patil

02 Jul 2024, 06:58 PM

India is the most important market for Skoda outside of Europe. The Czech automobile manufacturer is keen to expand their sales network and potentially establish local partnerships. 

Skoda India aims to nearly double its sales volume in the country. Skoda Auto has been present in the Indian market for almost two decades, finding the right partner could help Skoda Auto launch quality products at the right price.

Skoda Auto CEO Klaus Zellmer stated, “India is not only the most attractive region for us outside Europe, but it is also the most competitive environment that you probably find currently in the automotive market. You have many new competitors, new entrants, and new cars. So it really is a redatory environment.”

Skoda Auto’s CEO, Klaus Zellmer, has also announced plans to introduce hybrid models, with a focus on mild hybrids. The Czech company has confirmed that, along with the brand’s plan to launch its EV in India by 2027–28.

SKODA plans expansion in India by partnering with Indian manufacturers.

Skoda aims to increase its market share in India, which stood at 1.19 percent in 2023, to 5 percent by 2030. Its upcoming line-up of EVs and SUVs could help it grow in the market.

The Czech automobile manufacturer is actively expanding its sales network in India and aims to reach 300 touchpoints by the 2024 ending.

The company’s global CEO, Klaus Zellmer, has revealed plans to nearly double sales volume in the country by introducing new models and potentially forming partnerships with Indian manufacturers.

Zellmer recognizes the potential benefits of partnering with an Indian automotive manufacturer.

Klaus Zellmer, CEO of Skoda Auto, stated, “We’ve begun to see in Europe and China that having Something in between a BEV and an ICE is something consumers actually prefer at this point in time. In our international lineup, the Kodiaq and the Superb come in with a plug-in hybrid and an e-range that’s higher than 100 kilometers.” Zellmer added, “However, the challenge with plug-in hybrids is the cost factor.

In a cost-sensitive country, it’s more advisable to look at mild hybrids, and strong, plug-in hybrids can maybe come in the upper segment.”

SKODA is shifting its focus toward a more customer-centric approach in India, which includes ramping up local production to offer competitive pricing. With this move, SKODA aims to understand and integrate into the local market dynamics.

Notably, about 50% of Skoda cars manufactured outside of the Czech Republic are produced in India.

SKODA’s new compact SUV for the Indian market.

The new compact SUV will be the third Škoda product on the MQB-A0-IN platform, which is the first platform developed by the company outside of Europe and tailor-made for the Indian market.

This platform enables the use of efficient engines and advanced safety systems, specifically for the Indian market and to meet the country’s new, stricter safety and emission requirements.

The sub-4-meter compact SUV segment commands 50% of the SUV market’s volume and is extremely competitive, where models such as the Tata Nexon and the Maruti Suzuki Brezza have made their strong base.

“The sub-4m SUV will have 75-76% localization. Its pricing will use excise benefits and pass them on to customers. What we are going to do differently is learn from the lessons we have learned so far. We had a really good start with the 2.0 products,” he adds. 

The car will be produced in the same production line where the 2.0 products like Kushaq and Slavia are made. Its production capacity is 270,000 cars per year in the Pune plant for Skoda and Volkswagen combined.

The Czech automobile manufacturer is also testing the popular all-electric Enyaq in India. Skoda is also evaluating the MQB A0 37 platform for the Indian market.

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