Skoda has officially confirmed plans to introduce a budget-friendly electric vehicle (EV) to India, targeting a car size similar to the Kushaq. The vehicle will be manufactured at Skoda’s Aurangabad facility, marking an important step for the automaker’s electric journey in the Indian market.
Taking a Thoughtful Approach
Skoda’s enthusiasm for EVs in India is evident, but the company is approaching this move with caution. The automaker is waiting for the Central Government’s stance on EV and hybrid taxation policies, as well as the implementation of the CAFE 3 norms, before fully committing to the project. Skoda has emphasized that a significant degree of localization will be key to making this budget EV competitive in India. However, for that to be feasible, the EV market in India needs to expand substantially from its current size.
Considering India’s growing importance in Skoda’s global portfolio, the company is choosing a strategic, measured approach. Instead of rushing into the EV market, it is waiting for other automakers to pave the way for a more developed and sizable market. Skoda is confident that its products will offer enough value, even with a later entry, to make a meaningful impact.
First foray into EVs: Enyaq and Elroq SUVs
Skoda’s first attempt at electric vehicles will come before the budget EV, with the Enyaq and Elroq SUVs making their way to India. While the Elroq was recently unveiled, the Enyaq is expected to undergo a facelift in March 2025 before its official India launch. Both vehicles will initially be imported as Completely Built Units (CBUs), but depending on demand, Skoda may consider local assembly.
Why a Kushaq-Sized EV Makes Sense
The indication that the upcoming EV will be a Kushaq-sized vehicle aligns with Skoda’s future strategy for the Indian market. By the time this EV is launched, the Kushaq will have undergone significant updates, with both two-row and three-row options. It is expected that the new EV will be developed based on this updated version, ensuring it meets the evolving needs of the market.
Additionally, the shift towards larger vehicles in India makes this move even more relevant. With the EV competition heating up among major automakers like Maruti Suzuki, Toyota, MG, Mahindra, Tata, Honda, Hyundai, and Kia, Skoda is positioning itself to enter the market at just the right time.