Skoda keen on EV policy, wants sops for hybrids

NEW DELHI: Skoda Auto, which leads German giant VW’s India business investments, said on Tuesday that it is keen to invest in the country’s new EV policy but wants govt to consider new energy vehicles – including hybrids, plug-in hybrids electrics (PHEVs) – for benefits as pure electrics may take time to build up business due to challenges in charging infra and customer acceptance.
Martin Jahn, Skoda’s global board member and head of sales & marketing, said even in China, where the share of new energy vehicles is 50%, the contribution of pure battery-electric products is only half the number. “The other half is either PHEVs or range extenders – so some sort of a combination of battery and combustion engine,” Jahn told TOI. “So, the question is what’s really the best for India?”
Jahn said against some highly optimistic forecasts, the share of electrics will actually take time to rise in India (EVs were 2.4% of total passenger vehicles volumes of 4.3 million in 2024), unlike the growth seen in China. “The road to electrics will be slower in India than expected. So, it’s a very complex issue and we will follow whatever policy will come… The transition will be not very fast given the (charging) infrastructure in India, given the sentiment of the customers, and also the range anxiety issues that still persist.”
Asked about the group’s plans for investing under India’s new EV policy, which mandates a minimum manufacturing investment of $500 million to enjoy highly-subsidised import duty of 15% for 8,000 vehicles annually, he said it is being considered. “I think it’s very interesting for us and we are now basing our plans on this policy. But, there are more policies to be finalised in the first half of this year that will also have an impact on which car we bring, how fast we get it, or whether we get it as an import or local production.”
The company remains optimistic on the performance here, especially after it launched a mainstream sub-4 meter SUV Kylaq. “We hope to more than double our sales in India this year and cross 1 lakh units in annual sales against 36,000 units in 2024.”
The company will launch more cars here, which is likely to include electric Enyaq. “We will also bring the Superb (luxury sedan) this year, as well as the new Kodiaq (SUV). We will bring the first electric car to India.”
Jahn also said the company is expanding its retail presence in the country. “We now have 277 outlets and will have more than 350 touch points. We have a very positive momentum in the Indian market.”