Skoda Auto Eyes India as Key Growth Market, Plans Local EV Production
MUNICH: Czech automaker Skoda Auto is aiming to establish India as a “second pillar” of growth to reduce its reliance on Europe, CEO Klaus Zellmer said. The company, which drives Volkswagen Group’s operations in India, is preparing to make a significant push in the battery electric vehicle (BEV) segment by fully localising its China-developed CMP21 platform and potentially introducing another small EV, Zellmer told reporters here.
“Skoda is very strong in Europe, where we are currently the third-largest automaker. Our growth is impressive, and we are highly profitable, among the most profitable volume car manufacturers globally. However, depending heavily on a single region is risky,” Zellmer said, explaining the company’s plans for India.
Highlighting the lessons other automakers have learned from over-reliance on China and the U.S., he added, “We want a second pillar, and that is clearly India. That’s why we are serious about localising an entire platform here.”
The CMP21 platform, he noted, could eventually support multiple drivetrain types, not just battery electric vehicles.
Addressing reports that Volkswagen Group might invest an additional €1 billion in India, Zellmer clarified, “This has never been confirmed by us. What I can confirm is that we are serious about India as a growth opportunity for both Skoda and the group.”
On whether Volkswagen plans to bring Europe-focused electric models, such as the Skoda Epic showcased at IAA Mobility, to India, Zellmer said no. “We want to develop a car made for India, produced in India.”
Skoda has previously tested the Indian market with a few Enyaq electric SUVs, which were “pretty successful.” However, Zellmer said the company’s main BEV push will start once the CMP21 platform is fully localised. “The platform was engineered in China, but we plan to fully localise it in India—bringing the technology and sourcing everything locally for India,” he explained.
Zellmer also hinted at the possibility of introducing another small electric vehicle in India to meet CO₂ emission requirements, though he declined to share further details.
Expressing satisfaction with Skoda’s current performance under the India 2.0 project, he said, “With our current portfolio, especially the Skoda Kushaq, we are reasonably happy. Sales have doubled this year compared to last year, and the Kushaq has been a success.”
Under the India 2.0 initiative, announced in 2018, Volkswagen Group committed €1 billion between 2019 and 2021, with Skoda leading the growth drive. The company manages India operations for five Volkswagen Group brands—Skoda, Volkswagen, Audi, Porsche, and Lamborghini.
On recent GST rate cuts, Zellmer welcomed the government’s move. “This is a great initiative to boost car sales, which have been stagnating. It encourages consumers to explore lower-end segments, which is positive. While it benefits the entire industry rather than individual manufacturers, it will intensify competition,” he said.
