Skoda Auto Volkswagen set to rev up India EV play to 17% in 5 years

Currently, the 130 year old company, which has been in India for 25 years, has a 3% market share in the Indian automotive market, including internal combustion engine (ICE) vehicles and EVs

Skoda Auto Volkswagen India Private Ltd (SAVWIPL) plans to grow its electric vehicle (EV) portfolio to 17 per cent by 2030, said Managing Director (MD) and Chief Executive Officer (CEO) Piyush Arora.

 

Currently, the 130-year-old company, which has been in India for 25 years, has a 3 per cent share in the country’s automotive market. This includes internal combustion engine (ICE) vehicles as well as EVs. 

 

SAVWIPL manages five brands in India — Volkswagen, Skoda Auto, Audi, Porsche, and Lamborghini.

 

“Considering the ever-evolving trade situation and geopolitical shifts, I believe that India will be a very good growth market for us. We are targeting a 5 per cent share of the Indian automotive market in the medium term, encompassing both ICE and battery electric vehicles (BEVs). As part of this strategy, we expect EVs to contribute around 17–20 per cent to our overall portfolio by 2030,” Arora told Business Standard in an interview. “Before the end of this decade, we will have fully localised EV products available for Skoda and Volkswagen brands in the Indian market,” he added. 

 

The company believes that zero-emission vehicles and electric mobility (e-mobility) represent the future. As such, it is focusing on increasing penetration of e-mobility across all brands globally, with India being no exception.

 

There have been multiple product announcements for each brand, and Arora said. He added, “In the next two to four years, these products will not only be introduced in the Indian market, but we will also integrate our entire value chain with them.”

 

India has evolved into a significant consumer of e-mobility in recent years. In FY25, EV sales in India surged by 17 per cent.

 

According to Fortune Business Insights, EV sales in India are projected to grow at a compound annual growth rate (CAGR) of 22.4 per cent from 2024 to 2032. 

 

“Our strategy from the beginning has been to introduce our global products in the Indian market through our brands, Audi and Porsche. We brought EVs to India a few years ago. Simultaneously, to enhance our market presence and penetration, we are actively exploring opportunities to locally produce EVs,” Arora said. 

 

He added: “We are also looking for the right moment and opportunities to introduce global products. It would be through fully built unit imports or via our parts and components assembly operations.” 

 

However, achieving growth and higher market penetration will depend on the platform that SAVWIPL is currently finalising — one that is tailored for localisation in India. This will be part of the company’s strategy to increase market share in India.  

 

SAVWIPL's focus will remain on adding value for its customers by introducing the right products at the right time, particularly in the premium and luxury segments. 

 

Since entering India in the early 2000s with the Škoda brand, the company has primarily operated in these segments.

 

However, through its localisation strategy with models like the Volkswagen Polo and Vento, as well as the Škoda Fabia, it also entered the volume segment.

 

”We will implement a similar strategy for our electric portfolio. While our global products will cater to the premium and luxury segments, our locally developed products will target the volume segment of the EV market,” the MD and CEO said.

 

Arora attributed the delay in EV launches to geopolitical shifts and the country’s evolving EV policies.

 

He sees opportunities arising from US tariffs and potential free trade agreements (FTAs), which could enhance SAVWIPL's manufacturing capabilities and competitive pricing in India. 

 

“Even if tariffs are low for one country or another, the increasingly integrated nature of supply chains means that tariffs can have both direct and indirect impacts. Uncertainty surrounding these tariffs continues,” he said. 

 

For businesses to make effective decisions, it may take some time. However, once all bilateral pacts and FTAs are agreed upon, he believes that India can leverage its manufacturing capabilities and expertise at competitive prices.

 

This would provide an opportunity to SAVWIPL, as an automotive global company present in India, to capitalise on these advantages. 

 

Furthermore, the Centre is formulating EV manufacturing policies that may offer benefits for imports, too.

 

SAVWIPL is evaluating these aspects, and once clarity is achieved, the company will determine the appropriate timing for product launches.