Skoda Auto India is preparing to launch an electric SUV within the next two years, aligning with the upcoming Corporate Average Fuel Efficiency (CAFE) norms set to take effect in April 2027. The move signals the company’s commitment to strengthening its position in India’s rapidly expanding electric vehicle (EV) market.
Although its parent company, Skoda Auto, has a robust EV portfolio in Europe, Skoda Auto India brand director Ashish Gupta said the company’s strategy for India will focus on developing a locally built model rather than adapting a global product.
“Past experiences showed us that we need to develop a car in India for the global market rather than bring a global product to India,” Gupta said at the inauguration of a new dealership in Salt Lake Sector V, Kolkata.
Gupta added that Skoda Auto India plans to establish a localized supplier base to ensure competitive pricing. He noted that the EV segment currently accounts for about 5–5.5% of the total car market but is growing rapidly, doubling every year, and is projected to reach 18% by 2030. “We have to be present in this significant segment,” he said.
The Czech automaker, part of the Volkswagen Group, is marking 130 years globally and 25 years in India. Once active across multiple segments, including hatchbacks, sedans, and mid-size SUVs, the brand has shifted focus to SUV models, which now account for over half of India’s passenger vehicle sales.
“We are currently looking at enhancing our footprint and consolidating the products in our portfolio,” Gupta said. He highlighted that the company’s Kylaq model has been a major growth driver, with sales rising 101% between January and September compared to the same period last year. Skoda’s market share has doubled, moving the company from 11th to 7th place among automakers in India.
Skoda Auto India has also expanded its retail network significantly, from 224 touchpoints in December 2024 to 318 at present, and aims to reach 350 outlets by the end of this year.
Gupta expressed optimism that recent price cuts following GST revisions would spur demand during the festive season, potentially making it the best sales period for the industry in recent years. He expects overall passenger vehicle sales in India to reach 4.3 million units in 2025, despite a slight market contraction of 0.1% observed through August.
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