Skoda Auto India gears up for electric vehicle play with local push

Kylaq success fuels confidence as carmaker eyes exports, higher India mkt share

Škoda Auto India, the Czech carmaker that has recently found success with its compact SUV Kylaq, says it remains committed to developing a fully localised electric vehicle (EV). The EV will be manufactured at its Chakan facility for both Indian market and exports.

 

The current tariff environment or the developing EV policy by the Centre would not act as a deterrent, said a senior company official.

 

Speaking with Business Standard, Petr Janeba, brand director, Škoda Auto India, said, “We are committed to making the new production facility (for EVs) investment on our own. We have a 4.5 meter EV with two sets of batteries. While the platform is decided, product development is ongoing. It is a unique car that we don’t have in Europe.”

 

He added that the EV model line-up for Europe will include seven cars, starting from 20,000 euro. This will complement Škoda’s global EV portfolio. “It will not only be for India, but made in India for the global markets. The investment decisions and capacity are not finalised — it’s an evolving situation,” Janeba said.

 

Škoda is also closely monitoring the upcoming CAFE III norms. However, Janeba emphasised that the current tariff environment or the evolving EV policy will not affect Škoda’s determination to build a deeply localised EV at Chakan for both domestic sales and exports.

 

As for the recently launched Kylaq (bookings began in December), there are more than 15,000 customers waiting for the car, and it is generating 5,000 fresh bookings a month at present. For some variants, customers have to wait for six months. There are around 10,000 cars on the road now.

 

The surge in demand is also driven by the company’s rapidly expanding network — at the end of March, it had 280 touchpoints, and by September, that number is expected to reach 350.

 

With the expansion in its sales network, more cars on the road, and growing word-of-mouth, Škoda expects demand for the Kylaq to surge further. Before the Kylaq, Škoda’s addressable market in the passenger vehicle space was around 27 per cent; with this compact SUV, it now rises to 60 per cent.

 

Peak production capacity for the Kylaq is 80,000 units per year. “We can go up to 8,000 units a month in some months, provided suppliers are informed in advance. However, the annual capacity remains around 80,000 units, not 96,000. Suppliers would need to make more investments to scale up to that level,” he explained. In February, Škoda had produced 4,000 Kylaqs, which it expanded to over 8,000 units in March to meet demand.

 

On Thursday, Škoda unveiled the new Kodiaq, a premium four-wheel-drive SUV priced between ₹46.89 lakh and ₹48.69 lakh in India. The launch is aimed at strengthening Škoda’s position in the premium SUV space. Apart from luxury brands like BMW and Audi, competitors in this segment include the Toyota Fortuner Legender and the recently launched Volkswagen Tiguan R-Line. The premium entry-luxury SUV segment in India currently stands at around 3,500–4,000 units a month.

 

Janeba also said that SUV demand is expected to continue growing. “Around 15–20 years ago, SUV growth worldwide was triggered by road quality. In India, the infrastructure and road quality are improving extremely fast,” he said.

 

He further noted that the several EV launches this year could potentially triple EV penetration in the Indian market, which currently stands at 2.5 per cent of the passenger vehicle industry. “There is a chance that ICE vehicles will see a decline in demand as EV demand grows. When there is overall slow market growth and even slower ICE growth, customers will be flooded with promotional offers and discounts,” he predicted.

 

In FY25, the Škoda Auto Volkswagen Group held a market share of 2.03 per cent, selling 84,222 units, according to the Federation of Automobile Dealers Associations. Janeba said the company is aiming to increase its share to 3 per cent, riding on the rising demand for its vehicles.

4.5 meter EV with two battery packs is under development

 

Car will be made at Chakan

 

Car will also be for exports market

 

Kylaq generating 5000 fresh bookings every month

 

Skoda eyeing 350 touchpoints by Sep-Oct