India is Skoda Auto’s most attractive growth market, and the country will play an important part in the company’s international expansion, according to global CEO Klaus Zellmer.
In a virtual speech, Zellmer discussed the company’s India strategy, stating that Skoda will join the compact SUV class in a year and debut an electric car there.
Skoda Auto India aims to expand its Indian market share to 5% by 2030.
“We are always increasing our ability to respond swiftly to global markets. Here, India plays an important role. “Europe is important as a core market, but our strategic focus is on building new international foundations so that we can stand on two solid legs,” Zellmer added.
He went on to say, “India is a key contributor to our global growth and the most promising growth market in the coming years.“
“Strengthening our India operations also strengthens our wider internationalization potential,” he went on to say.
He stated that around 50% of Skoda automobiles built outside of the Czech Republic are produced in India and that the company’s export strategy for India-developed goods is gaining traction.
“Our vehicles have already been shipped to the Gulf countries. We’ve also announced our market debut into Vietnam, which is being backed by our successful operations in India, and automobiles and components built in Pune are propelling Skoda Auto into new markets,” he added.
Zellmer stated that Skoda Auto has just decided on its future investment plan in terms of product advancements for its existing range, as well as the addition of new products in both the internal combustion engine and battery electric car categories.
Zeller stated that Skoda Auto will enter a new era in India and foreign markets, saying, “The next step will be an all-new small SUV that we will unveil in roughly a year from now. The new vehicle substantially expands our customer offering in the strong SUV segment, which accounts for more than half of the total new car sales potential in India.“
According to a recent Crisil rating report, a significant shift in consumer preferences has increased demand for SUVs, doubling their market share to around 60% of total domestic volume this fiscal year, up from around 28% before the pandemic in fiscal 2019.
This preference is anticipated to expand further, bolstered by a robust pipeline of new model launches across price points, including electric variations, and normalized semiconductor availability following a lengthy period of shortage, according to the survey.
Zellmer stated that Skoda Auto is also planning for the EV industry in India.
The all-electric Enyaq is the cornerstone of Skoda’s worldwide EV strategy, he explained, adding, “I’m sure you’re aware that we’re already testing the car in India.” Enyaq is slated to enter the Indian market later this year.
In terms of sales in India, Zellmer stated, “We have an excellent plan to grow the Skoda brand in India and are targeting a market share of around 5 percent by 2030.“
