Skoda VW India Eyes Long Term Within EV Space Of India
20 May 2025, 02:51 PM
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Skoda Auto Volkswagen India Pvt. Ltd. (SAVWIPL) aims to bring more EVs from its Skoda and Volkswagen brands to India, with the local production of these cars starting in the next two years.
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EV Showdown: Skoda-VW vs The Competition in India (2025)
| Brand | EVs in India (2025) | Local Manufacturing | Market Share (2025) | Launch Timeline |
|---|---|---|---|---|
| Skoda-VW India | Audi e-tron, Porsche Taycan (luxury); VW ID.4, Skoda Enyaq incoming | Planned from 2027 (MEB Entry/CMP) | 3% (targeting 5%) | 2025 (CBU); 2027 (local) |
| Tata Motors | Nexon EV, Punch EV, Tiago EV | Fully localized | 14%+ | Already in market |
| Hyundai-Kia | Ioniq 5, Kona, EV6 | Assembly in India (partial) | ~7% | In market, expanding |
| Mahindra | XUV400, BE series (soon) | Upcoming local production | ~2-3% | Late 2025 onwards |
| MG Motor | Comet EV, ZS EV | Local assembly | ~3-4% | Current & growing |
SAVWIPL made an announcement that it plans to broaden its EV range with the Volkswagen ID.4 and the Skoda Enyaq after four years of selling only expensive models from Audi and Porsche. Launching in the same year, both vehicles experienced delays caused by difficulties from within and outside the company.
“We are actively exploring opportunities to manufacture electric cars in India,” Managing Director and CEO of SAVWIPL, Piyush Arora, mentioned this during a recent interview. “We expect EVs to contribute up to 20% of our overall sales portfolio by 2030.”
Country aims to increase local manufacturing by 2027
Currently, the company is considering local EV production using Volkswagen’s MEB Entry and MEB Small platforms as well as the Compact Main Platform, now known as CMP. By as early as 2027, SAVWIPL plans to bring out its first locally manufactured EV and hopes that this step will help it compete in India’s affordable car market.
Existing plans show the company importing its EVs. There are currently plans for locally assembling the Skoda Enyaq. It has also been suggested that SAVWIPL will start assembling the Enyaq Coupe and soon the Elroq Skoda.
Development plans in India are linked to the India-EU Trade Agreement
A lot of what the company will do in the next years with EVs will depend on the results of FTA talks between India and the European Union. Thanks to a favorable FTA, it would be possible for SAVWIPL to manufacture certain components of EVs in India with minimal increases in production expenses.
Having a Small Portion of the Market, But Still Seeking Big Results
Skoda VW India hopes to increase its share of the passenger vehicle market from the current 3% to 5% by the medium term. As Toyota launches both new-generation ICEs and EVs, EVs are expected to help the company achieve its goal.
According to FADA, the market for electric vehicles in India expanded rapidly last year, with sales up over 50%. Nonetheless, the high cost of EVs and insufficient infrastructure are obstacles for accommodating more EVs.
Having a Small Portion of the Market, But Still Seeking Big Results
With Skoda VW joining the EV market, it now faces fierce competition from well-known names such as Tata Motors, Mahindra, Hyundai and MG Motor which have all released more EVs in recent times.
It is believed that producing cars in India at competitive rates and with a well-known brand could enable Skoda and Volkswagen to do well in the Indian electric car market.
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