Volkswagen Group‘s Indian unit plans to introduce an affordable electric SUV in the latter half of this decade, as announced by the CEO during a recent event. Piyush Arora, CEO of Skoda Auto Volkswagen India, revealed ongoing efforts to develop the entry-level electric vehicle (EV), emphasizing the necessity for substantial demand to justify the significant investment required, reported by Reuters.
Despite government targets aiming for 30% EV penetration by 2030, analysts project a more modest 10-20% share in total car sales by then. Arora acknowledged the slower-than-anticipated EV adoption rate in India, prompting the exploration of exporting the new model to international markets to rationalize investment costs.
Arora highlighted India’s favorable tax structure for EVs, contrasting the minimal 5% tax on EVs with the steep 43% levy on hybrids, just shy of the 48% imposed on petrol cars. The company’s focus on EVs aligns with these tax incentives, with potential consideration for hybrid vehicles contingent on governmental support.
Anticipating export opportunities, the company eyes Southeast Asia, Gulf Cooperation Council (GCC) countries, and North Africa as potential markets, building on their experience in exporting gasoline cars from India. Arora noted that recent regulatory and safety changes in India have streamlined export processes, enhancing global competitiveness.
Despite government targets aiming for 30% EV penetration by 2030, analysts project a more modest 10-20% share in total car sales by then. Arora acknowledged the slower-than-anticipated EV adoption rate in India, prompting the exploration of exporting the new model to international markets to rationalize investment costs.
Arora highlighted India’s favorable tax structure for EVs, contrasting the minimal 5% tax on EVs with the steep 43% levy on hybrids, just shy of the 48% imposed on petrol cars. The company’s focus on EVs aligns with these tax incentives, with potential consideration for hybrid vehicles contingent on governmental support.
Anticipating export opportunities, the company eyes Southeast Asia, Gulf Cooperation Council (GCC) countries, and North Africa as potential markets, building on their experience in exporting gasoline cars from India. Arora noted that recent regulatory and safety changes in India have streamlined export processes, enhancing global competitiveness.
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Volkswagen Group views India as a vital export hub, following in the footsteps of industry rivals Maruti Suzuki and Hyundai Motor. Notably, Volkswagen’s exports surged by over 80%, while Skoda witnessed a quadruple increase in exports this fiscal year.
Additionally, Skoda Auto Volkswagen India is rigorously testing the Skoda Enyaq electric SUV for potential introduction in the Indian market, although no specific timeline was provided.
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