Written By: Ehtesham Arif
Skoda Auto Volkswagen India plans to launch an affordable electric SUV in India, aligning with the nation's EV ambitions and favorable tax incentives.
Despite government targets, EV adoption in India remains modest. Exporting the new model to international markets may help rationalize investment costs.
India's EV tax structure favors electric vehicles, offering a minimal 5% tax compared to higher levies on hybrids and petrol cars, driving the company's focus on EVs.
Skoda Auto Volkswagen eyes export opportunities in Southeast Asia, GCC countries, and North Africa, leveraging India's streamlined export processes and regulatory changes.
CEO Piyush Arora emphasizes the evaluation of VW Group platforms to develop a compact electric SUV in India, requiring significant investment justified by volume.
Volkswagen Group sees India as a vital export hub, following industry rivals' footsteps, with significant increases in exports observed this fiscal year.
Skoda Auto Volkswagen India is also exploring the introduction of the Skoda Enyaq electric SUV in the Indian market, reflecting a commitment to sustainable mobility.