Volkswagen Starts Testing Electric Cars In India Under Skoda Brand

Last Updated on August 19, 2022 by Anu Joy

It is no secret that Volkswagen AG’s Skoda brand has been planning on bringing its Enyaq iV electric SUV to India. There have been multiple sightings of its uncamouflaged test mules in the country, which suggest that it could be the first electric car in India from Skoda. Now, the German auto giant has confirmed that it is evaluating its products that could enter the mass market segment in India.  

Volkswagen introduced its Porsche Taycan and Audi e-Tron electric vehicles, which belong to the niche segment, in India recently. Piyush Arora, Managing Director of Skoda Auto Volkswagen India, in an interview with PTI, said that the brand adopted a top-down strategy for India. Arora said that the Porsche Taycan and Audi e-Tron have been successful in the luxury car category, and now the company is looking forward to introducing more affordable electric cars. The group has entrusted the responsibility of evaluating and growing its electric vehicle portfolio in India to Skoda Auto.  

India is a very price-sensitive market and pricing would be crucial. The Volkswagen group is keen on the local assembly of the Skoda electric vehicles and Volkswagen’s ID range in India. This will help them reduce import taxes and price their products competitively. Eventually, it will focus on local production, once the charging infrastructure in India is ready and there is a high demand in the market for EVs.  

Arora added that India is moving towards electrification at a rapid pace than anticipated and the Volkswagen group doesn’t want to miss the opportunity. When asked about the future of ICE-powered cars in India, Arora said, “India is a very peculiar market, the growth in India will come from both fossil fuel vehicles and electric vehicles. Most markets that are transitioning to electric mobility are taking away the share of ICE (internal combustion engine) vehicles, but in India, both markets will grow.” 

Arora stated that the primary goal of the company under its “India 2.0” project is to make it sustainably profitable and achieve the market share that it intends to attain. That will be the focus of the company for next year as well. It will then lay out the future roadmap and bring in more investments in the country to develop EVs and ICE vehicles suitable for the Indian market.