Skoda Auto, which has been tasked with managing Volkswagen’s Rs 8,000-crore India investment, wants to manufacture electric cars in the country, but the EV debut will come even sooner through the imported route, with the launch of the green SUV Enyaq.
Electric mobility is a big emphasis area for Skoda Auto globally, according to global chairman Thomas Schaefer, India will be an important market for green vehicles due to regulatory incentives.
By the end of the decade, the India subsidiary, Skoda Auto Volkswagen India, could have roughly 30% of its local portfolio running on electric powertrains. While this will still be less than the firm’s global objectives of 50-70% green fleet in the same time frame, the corporation seeks a deeper commitment in India by having a deep-rooted local manufacturing setup. “If you don’t go into deep localisation, it will never be feasible,” Schaefer said, adding, the company could indigenise “right down to the cell factories”. He said localisation is critical to ensure affordability.
The Volkswagen Group’s India EV plans come at a time when firms like Tata Motors, Mahindra & Mahindra, and the Korean twins Hyundai-Kia are ramping up their green efforts and investments.
While localization is vital for a sustainable and critical sales mass, Schaefer believes the government should first decrease import duties to allow companies to test-market global products. “Electric cars can’t be penalised. If you believe that this is the future, then till the time until they are localised in India, you cannot penalise them (with higher duty). Otherwise, you will stop the development and you stop the movement in the market and you lose connection with the rest of the world.”
Tesla founder Elon Musk, as well as other players such as Mercedes-Benz, have lobbied for lower import duties on electric cars, and Schaefer’s demand is similar.
