Skoda Auto, led by CEO Klaus Zellmer, is determined to solidify its position in the highly competitive Indian market and achieve profitability. In order to achieve this, the Czech carmaker, responsible for guiding the Volkswagen Group’s strategy in India, plans to introduce multiple new models and overhaul its existing lineup. During an interview with ET at the IAA Mobility Show 2023 in Munich, Zellmer revealed that the company also aims to boost its exports from India.
Skoda Auto has enjoyed considerable success with its India 2.O strategy, which involved launching locally manufactured models with a high level of localization. Now, the company intends to expand its presence in both domestic and export markets, and will continue investing in internal combustion engine (ICE) vehicles as well as battery electric vehicles (BEVs).
While Zellmer expressed satisfaction with the performance of the Kushaq and Slavia models, he acknowledged the need for further improvement. The goal is to surpass the record sales achieved in 2022. Zellmer emphasized that Skoda Auto will focus on preserving the appeal of these models. However, the company’s domestic sales figures in the current fiscal year indicate the necessity for more efforts. According to data from the Society of Indian Automobile Manufacturers, domestic sales declined from 24,448 units to 20,036 units in the first five months.
During the same period, the broader passenger vehicle market experienced an 8.5% growth, with sales increasing from 1.4 million units to 1.6 million units. Skoda Auto aims to further enhance its product lineup in India. Zellmer revealed that the company is considering exploring segments below the mid-size sedan Slavia and above it to determine market viability.
Skoda Auto is also preparing to enter the battery electric vehicle (BEV) segment in India. The company plans to introduce the Enyaq iV, a five-seater electric SUV, in the second half of 2024. This model will be imported and sold in limited quantities, serving as a trial to assess the potential for future BEV offerings in the market. The Elroq is another BEV in Skoda’s pipeline, with a European launch scheduled for 2024. Zellmer stated that they will evaluate its suitability for the Indian market.
Furthermore, Skoda Auto intends to introduce an entry-level BEV priced at around 25,000 euros, making its global debut in 2025. This model may also be considered for the Indian market. The company has an ambitious plan to launch six BEVs worldwide by 2026.
In addition to focusing on the domestic market, Skoda Auto aims to boost its exports. Vietnam is a key target market for the company’s export strategy, and exports to Vietnam are expected to begin next year, potentially reaching an annual volume of 35,000 to 40,000 cars. This would more than double the export volume achieved in 2022, when the company shipped 35,000 cars from India.
Overall, Skoda Auto has a strong lineup of cars in its pipeline, which is expected to increase its market share and profitability in India. The company remains confident in its ability to succeed and is determined to make significant progress in the highly competitive Indian market.
(The reporter was in Munich last week to attend the IAA Mobility 2023 at the invitation of Skoda Auto Volkswagen India)
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