Skoda Auto India plans to introduce electric vehicles from its global portfolio in limited volumes next year as the Czech automaker prepares to enter India's EV market.

Skoda Auto India's Brand Director Ashish Gupta said the company needs an electric vehicle in its portfolio to meet future regulatory requirements as EV adoption increases in the country.

Skoda India to bring EVs: Additional details

"A lot of things are under discussion, so, for meeting the CAFE norms, there are a lot of opportunities available, along with electrification, which has to be the cornerstone of meeting all compliance regulations. That is something which we are aggressively working on," Gupta told media sources.

Gupta said the company also needs an electric car in its portfolio as EV adoption has increased in recent months amid higher fuel prices. "The overall market is growing much faster than what was planned, so our EV plans cannot be changed overnight just because the market has suddenly moved to EVs. High-volume EVs can only be introduced when there is localisation, and that is something we are working on heavily," he stated.

While Skoda has yet to announce a specific locally manufactured EV for India, Gupta confirmed that the company plans to introduce models from its global EV line-up early next year.

"It may not be a local EV, but yes, we just had two blockbuster launches globally of the Epiq and the Peaq. The Elroq is the bestselling EV in Europe, so these are opportunities available to us in limited batches," he said.

He further added that, under the current tax and duty structure, these models could not be priced at levels that would generate significant volumes. "But definitely, we need to urgently showcase our EV credentials and the proof point to India," he noted.

The approach would allow Skoda to enter India's EV market without immediately making the investment required to localise an electric model. With imported EVs facing higher costs, Gupta said the initial objective would be to introduce the brand's EV technology and capabilities rather than target mass-market volumes.

Skoda India's hybrid plans remain uncertain

Skoda's approach to hybrid vehicles remains uncertain. Gupta said the company had previously considered hybrids a stronger opportunity than EVs in India, but market data from the past two years had changed his assessment.

"Two years ago, I would have bet on hybrids more than EVs, but the tax structure has not helped anybody. In the last year, pure hybrids have stayed at 2 percent of the market and have not gone beyond that. So, I am not sure whether hybrid is the right way to go, and what the last six months have also shown us is that people are more than willing to go for EVs now."

The current trade and taxation structure is also influencing the company's approach. Gupta said the India-EU Free Trade Agreement, while potentially creating opportunities for imported petrol and diesel models, does not provide similar benefits for electric and hybrid electric vehicles.

"I think from a global portfolio point of view, and bringing cars from there with the contours of the FTA as they are, petrol and diesel will definitely be an opportunity. Hybrid electric vehicles (HEVs) and electrics do not have any benefit, unfortunately," he said.

The immediate priority is to introduce EVs in India while the company continues to assess which powertrains can provide the required combination of regulatory compliance, customer demand and commercial viability.