The Volkswagen Group company that is in charge of implementing the group plan in India is stepping up its investment and stepping into the next phase of the market by introducing electrified vehicles and entering the competitive sub-four-meter compact SUV sector.

Even though the top five automakers in the same market have had a successful run, most recently driven by a steady increase in the volume of more expensive models, Czech automaker Skoda Auto has maintained a modest profit target for India while being in the market for more than 20 years.

In India, the Volkswagen Group company spearheading the group strategy is reaffirming its commitment to the market by entering the competitive sub-four-meter compact SUV class and introducing electrified vehicles as part of its next investment phase. Yet, the company’s top executive stated that it has reasonable expectations for a market where its Asian competitors have an advantage.

For India, profit is not the primary goal. While some profit is necessary, the exact amount is unimportant. We are optimistic about this market’s future. As to Martin Jahn, Member of the Board of Management for Sales & Marketing Skoda Auto a.s, “We are currently in a phase where we are trying to enhance our footprint and increase the car park,” ET was informed. Parking lot,” Martin Jahn, a member of Skoda Auto a.s.’s board of management for sales and marketing, told ET.

Jahn went on to say that Skoda “cannot continue to lose money” in India and that the CSUV, which is scheduled for release in the first half of 2025, would provide the much-needed volume boost to the company’s third-largest outside of Europe India operation. According to him, this would also enable the business to make the best use of its network of 260 dealers.

“We want to sell as many automobiles as we can, but the market needs to accept it and it needs to turn a profit as well. To meet with the company’s dealer partners, he traveled to Mumbai.

As co-founder of the brand consultancy business Expereal Avik Chattopadhyay points out, knowing a brand is one thing, but knowing about a brand is quite another. The responsibility is on the brand to connect with consumers who value the brand’s DNA and want to be associated with it, as well as to engage with the market on the same terms. He continued by saying that Skoda needed to concentrate on raising brand awareness. It is seen as just another European automaker. “Skoda needs to carve out a mental space for itself.”

Jahn provided an update on Skoda’s electric vehicle (EV) ambitions for India, stating that the business “continues to explore all possibilities,” which may include partnering to produce an affordable EV model that might cost as much as Rs20 lakh. It would introduce the Enyaq, a high-end electric SUV, to “test the waters” in the interim. With an expenditure of six billion euros by 2027, Skoda Auto plans to introduce at least six electric vehicle models worldwide in the ensuing years.

With an eye on the development of electric mobility in India, Mahindra & Mahindra and Volkswagen Group announced last month that they had inked a supply agreement. Thanks to this partnership, Mahindra’s INGLO electric platform will be outfitted with unified cells and Volkswagen’s MEB electric components.

In response to a question about whether the future relationship will encompass the two businesses working together to produce a low-cost platform, Jahn stated, “The agreement with Mahindra was completed at the VW Group level and is not directly related to Skoda.” in regards to whether the business and JSW are discussing possible cooperation. “We are investigating every possibility,” he stated, failing to provide any details.
Since “everything is so dynamic in India and elsewhere when it comes to EVs, we will do whatever makes business sense,” Skoda’s EV strategy for the country will be implemented gradually, the company stated.