The Czech carmaker, which is responsible for leading the Volkswagen Group strategy in India, one of the top three markets for Skoda Auto, also plans to ramp up exports from the country as part of the plan, he told ET on the sidelines of the IAA Mobility Show 2023 in Munich last week.
Having tasted reasonable success under the India 2.O strategy, which included launching made in India models with high localisation levels, Skoda Auto is now looking at scaling up presence in the domestic and export markets and will continue to invest in both internal combustion engine (ICE) and battery electric vehicles (BEVs) , he said.
“I am reasonably happy with the performance of the Kushaq and Slavia. Can more be done? Definitely. The aim was to beat 2022 when we had record sales. “We will continue to work towards maintaining the attractiveness of these models,” said Zellmer. Skoda Auto’s domestic sales in this financial year reflects the need to do more. In the first five months of the fiscal, the company’s domestic sales fell to 20,036 units from 24,448 units a year ago, according to data from the Society of Indian Automobile Manufacturers.
Sales in the broader passenger vehicle market increased 8.5% to 1.6 million units from 1.4 million during this period. On the back of the newly launched models under India 2.O, the company’s full-year sales in 2022-23 increased to a record 52,269 units from 34,004 units in the previous year.Building on initial success, Skoda Auto plans to strengthen its line-up in India further. “In order to widen product offerings, we are looking at segments below the Slavia (mid-size sedan which competes with the likes of Honda City and Hyundai Verna) and above and see if it can be successful in the Indian market. The decision has yet to be made,” said Zellmer.The company is preparing to enter BEV segment, where it doesn’t have a presence, with the Enyaq iV – a five-seater electric sport utility vehicle (SUV) in the second half of 2024. It will be imported and sold in small numbers but help the firm “test water” for future EV offerings in India. It’s likely to be followed by the Elroq in the following year. “The Elroq is going to be launched in Europe in 2024. Can also see if that will be a good fit for India,” said Zellmer.Also in the works is an entry-level BEV, likely to be priced at 25,000 euros, which will make a global debut in 2025 and can be considered for the Indian market, said the Skoda CEO. The company has enough cars in its pipeline that can help it increase its market share and make money in India, he said. Globally, the company plans to launch six BEVs by 2026.
Skoda is looking to boost exports with the existing models. Among other markets, serving Vietnam will be an important part of the export strategy. Exports to Vietnam, which could be in the region of 35,000 to 40,000 per annum, will start next year and could more than double the exports volume of 2022, when the company shipped 35,000 cars from India.
(The reporter was in Munich last week to attend the IAA Mobility 2023 at the invitation of Skoda Auto Volkswagen India)