Skoda Auto has announced a significant investment plan for India focusing on the launch of a new compact SUV and the enhancement of its electric vehicle (EV) portfolio. Klaus Zellmer, the CEO of Skoda has outlined the company's ambitious targets and strategies to strengthen its position in the Indian market.
Investment in New Products
Skoda's investment will be directed towards the development of a compact SUV and battery electric vehicles. This move is expected to increase the brand's addressable market to almost 50-60% of India's rapidly growing passenger vehicle segment.
Expansion of Production Capacity
The investment will lead to a 30% expansion of Skoda's production capacity in India enabling the company to meet the anticipated increase in demand.
Sales Targets
Skoda aims to sell 1 lakh vehicles annually by 2026 and achieve a 5% market share by 2030. The upcoming compact SUV, based on the MQB A0-IN platform developed specifically for India, will play a crucial role in reaching these targets.
Focus on Electric Mobility
The company's global EV strategy includes the introduction of six new all-electric models in the coming years. The Enyaq iV, Skoda's electric vehicle, is being tested in India and has already gained popularity in Europe as a top-selling fully electric car.
Strengthening India's Role in Global Operations
India is a key contributor to Skoda's global growth, with about 50% of the company's cars manufactured outside the Czech Republic coming from India. Skoda's export strategy for India-developed vehicles continues to gain momentum highlighting the importance of the Indian market in the brand's internationalization efforts.
Skoda's latest investment in India reflects the company's commitment to expanding its presence in one of the world's most promising automotive markets. By focusing on new product launches, including electric vehicles, and increasing production capacity, Skoda is well-positioned to achieve its ambitious sales targets and strengthen its global operations with India as a key manufacturing hub.