Mumbai:
Skoda Auto Volkswagen India, the Indian subsidiary of the Volkswagen Group, is considering a small car EV for the Indian market and will look at setting up an EV factory in the country post-2025.Thomas Schaefer, the Global CEO of Skoda Auto told ET, the development of India on the electrification front is very encouraging and it will play an important role in the second half of the decade to serve not only India but other emerging markets with “affordable EVs”.
A small car based on VW Group’s platform could be used in India, confirmed the CEO.
He asserted, India cannot just remain an internal combustion engine market forever, there needs to be a point where investment needs to come in for electric vehicles, especially for affordable EVs.
“There are many regions of the world, who need more affordable entry EVs. At the moment, as a company, we can see this plan through. India is not going to lag behind. You can see the movement in the market, there is a strong signal. I like it.”
On a specific query on whether Skoda VW will localize, Schaefer added, “We would need a new factory, mid-term India also needs to transform, by the second half of this decade,” he added.
The company is currently doing a pilot study on Enyaq premium electric vehicle in India, it has plans of adding three more EVs in the coming few years, and some of these products are suitable for India, said the management.
As the world transitions from conventional internal combustion engines to electric vehicles, the group will need a manufacturing base to other emerging markets.
Schaefer expects India to play a much more significant role in the VW Group’s future – not only in EVs but also in conventional petrol run vehicles for the next 10-15 years.
Schaefer says, India could be a “corner stone” for future to cater to the market in South East Asia, Africa in the coming 10-15 years for petrol run cars including EVs.
The global CEO of Skoda who is set to take over as a Chairman of VW brand in July added, “India needs to play a bigger role. I always kept saying it since I joined the group. I want India to take the rightful place in this network of the group and it can do that. But I’m very optimistic and pushing the team. No excuses. We have to make it happen.”
Having invested Euro 1 billion for four cars – (Skoda Kushaq, Skoda Slavia, Volkswagen Taigun and Volkswagen Virtus), Skoda Auto Volkswagen will now work on the “2.5 project” – which is a small sub-4 metre SUV – which will cater not only to India but also other emerging markets
ET had exclusively reported on the Group’s 2.5 project in July of 2021. The project has been approved and funds will flow into India in the coming year or so.
The CEO said the group has “successfully put the Euro 1 billion 2.0 plan on road” by doubling the sales in the country in 2021, with the strong demand, he hopes for doubling of volumes, but said supplies may be a challenge.
The company expects the semi-conductor supplies to improve from the second half of 2022.
Speaking to the media post 2021 earnings call, Schaffer said Skoda is on course for success outside of Europe in countries like India. The brand has already received over 35000 bookings for its newly launched SUV Kushaq and Slavia mid-size sedan in the country.
Terming India as “blueprint” for other emerging markets to follow, Schaefer said Skoda is also taking much bigger responsibility for the Volkswagen Group beyond regions into product platforms.
Reviewing the earnings, Schaefer said the Czech brand has achieved a lot in 2021 despite the “languishing times, and has defined a “new strategy, with a clear plan for this decade, with significant progress on electrification.”
He informed that the automotive industry lost over 200 billion euros due to the semiconductor shortage in 2021 and the brand Skoda was also severely affected, which faced a shortfall of 2.8 lakh units in its 2021 sales, which pulled down the annual sales by 12% last year.
Beyond Enyaq IV, Skoda plans to launch three more electric vehicles in the near future. The Czech car major has set itself a target of selling over half of its production with an electric powertrain by the end of the decade, and feature amongst the top 5 EU brands by 2030.
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Skoda brand has received 35000 bookings so far of Kushaq SUV and Slavia mid-size sedan
