Skoda Auto India plans to maintain its sedan portfolio while expanding its powertrain and electric vehicle offerings, with locally manufactured EVs expected from 2028.

The Czech automaker, which recently introduced the Slavia facelift, Superb diesel and Octavia RS at the same event, continues to sell sedans despite the Indian market's shift towards SUVs.

Ashish Gupta, brand director at Skoda Auto India, said sedans remained part of the brand's portfolio despite changes in market demand. "If you look at it, sedans continue to be the quintessential car," he said.

The Superb nameplate was introduced 90 years ago, while Skoda's sedan portfolio in India has included models such as the Octavia, Rapid and Slavia. Gupta said the sedan body style had been part of the brand's global and Indian portfolios. The Slavia currently accounts for nearly 30% of India's premium sedan segment. Gupta said the Slavia facelift would continue to be part of Skoda's Indian portfolio and could attract customers who prefer the body style.

He attributed continued demand for sedans to their driving dynamics and styling, noting that some buyers use them for formal occasions and leisure driving. However, he does not expect the segment to recover significantly in the near term.

"I think the sedan segment will continue to remain a smaller part of the market - that much is very clear," he said, referring to the continued flow of new launches towards SUVs and other body styles.

Gupta also acknowledged that manufacturers had contributed to the decline in sedan demand by focusing more heavily on SUVs. He said Skoda remains among the global mass-market brands that continue to offer several sedan models.

At the same time, Gupta said growing SUV penetration could create opportunities for sedans. As SUVs become more common, families with multiple vehicles may seek different body styles, while first-time buyers could continue to support sedan demand.

"Sooner or later, families wanting to have multiple cars would like to have differentiated kind of cars. So that is an opportunity for the sedan and one which will continue to evolve in India as the market matures," he said.

Skoda's sedan portfolio in India

The Slavia remains the entry point into Skoda's sedan range and competes primarily with the Volkswagen Virtus. Skoda is also preparing a CNG version of the Slavia, which is expected to target customers seeking lower running costs.

The Superb diesel is scheduled to return to India in 2027 in top-spec Laurin & Klement (L&K) trim. It will be Skoda's first new diesel model in India since the company discontinued diesel powertrains in 2020. Positioned below models such as the Mercedes-Benz C-Class and BMW 5 Series, the Superb will provide a higher-priced option within Skoda's sedan portfolio.

The Octavia RS is also set to return to India around the upcoming festive season. The performance-oriented sedan will be brought in as a fully imported model and limited to 50 units. Gupta said customers who had previously expressed interest in the Octavia RS would receive early access.

The three models will cover different parts of the sedan market, with the Slavia aimed at mainstream premium sedan buyers, the Superb targeting higher-priced segments and the Octavia RS aimed at performance-focused buyers.

India-EU FTA could affect imported models

The upcoming India-EU Free Trade Agreement (FTA) could influence Skoda's plans for fully imported models such as the Superb. Gupta said the agreement had given the company greater flexibility in evaluating options for Skoda and the Indian market.

"The FTA has kind of given us a good choice between what makes better sense for us and for the market as well. The whole idea is to start deliveries towards Q2 of next year. We are hopeful that by that time, the contours of the FTA will be decided, and we will have clarity on what kind of duty structure to apply to our imported models," he said.

A potential reduction in import duties could enable Skoda to bring additional batches of models from its global portfolio to India, while currency fluctuations could influence the final prices of imported vehicles.

Skoda prepares for local EV production

Alongside its sedan strategy, Skoda is expanding its powertrain portfolio. The company's Indian range has consisted entirely of petrol models since 2020, while petrol vehicles now account for less than half of the overall Indian car market.

The company plans to add CNG models, return to diesel with the Superb and introduce limited batches of fully imported EVs. A locally manufactured electric model is expected to arrive in 2028.

Skoda has begun work on its India 3.0 programme, which is expected to include a CNG-powered Kylaq in 2027 and two locally manufactured battery-electric vehicles from 2028. The first EV is expected to be a five-seater, followed by a seven-seater at a later stage.

Martin Jahn, Skoda Auto board member for sales and marketing, said the company was considering an electric vehicle for the Indian market.

"We know we have to do electric, so we are now thinking about what would be the best option for an electric car in India," Jahn said on the sidelines of the updated Slavia's launch.

Skoda has not disclosed detailed specifications or positioning for the upcoming EVs. However, the programme is expected to use an adaptation of Volkswagen Group's China Main Platform (CMP). The India-specific version is referred to as the India Main Platform (IMP) and is being adapted to India's cost requirements and market conditions.

The group plans to use an existing electric architecture while localising the platform, battery system and key components. Localisation will be required for the EVs to compete in India's mainstream electric vehicle market.

"The volume EVs are going to come when there is localisation, and that is something which we are working on heavily," Gupta said.

Major investment being considered for EV programme

Skoda will require additional investment to design, develop and engineer its locally manufactured EVs and is understood to be close to finalising its next phase of investment in India.

Although the company has not officially disclosed the amount or structure of the proposed investment, sources have indicated that it could be around EUR 1 billion (US$ 1.2 billion). Skoda is evaluating options to fund and execute the EV programme, including bringing in a strategic partner. Skoda Auto Volkswagen India is reportedly in the final stages of discussions over a potential alliance with the JSW Group.

Under the proposed arrangement, the Indian conglomerate is expected to take a majority stake and provide capital for the EV programme. However, the discussions have not reached a formal conclusion, and the final structure and scope of any alliance remain undecided.

If the proposed partnership does not materialise, Skoda Auto Volkswagen India is also considering other funding options. The combination of its sedan portfolio, planned CNG and diesel models and locally manufactured EVs would expand Skoda's powertrain and product range in India, allowing it to address demand across different segments as the market changes.