Audi launched its first EVs in India in 2021, but all models have been discontinued.
Skoda started testing the Enyaq EV in India in 2022, but doesn’t have an EV in the showrooms.
Volkswagen showcased the ID.4 in Jaipur in 2023, but it has disappeared from the website.
For a group that ranks as the largest seller of EVs in Europe, and maintains the widest global portfolio, the absence from the Indian charging grid seems like a paradox – as barring Porsche, no group brand has an EV in India. But according to Piyush Arora, MD & CEO of Skoda Auto Volkswagen India, this isn’t a withdrawal, but an alignment with business reality.
Indian electrification timeline
Arora told this newspaper that while the Volkswagen Group believes the future of mobility is electric, the pace of global adoption is uneven, and rightly so. He said that different markets – North America, Europe, and China – are moving at different speeds when it comes to electrification, often dictated by local subsidies and shifting regulations, but India is following its own unique path, defined by three critical pillars: customer acceptance, infrastructure readiness, and evolving technologies.
He added that rather than rushing in, the group is eyeing the turn of the decade for serious electrification – a time when EV penetration in India will reach between 11-13%, potentially climbing to 16-17% by 2030. This 2030 window is when the group intends to fully participate and be prepared for mass-market shifts.
Audi doesn’t have an EV now
From the luxury perspective, Balbir Singh Dhillon, the head of Audi India, noted that being a first-mover provided invaluable learnings.
Audi launched the e-tron SUV and e-tron Sportback in 2021. These were followed by the high-performance Audi e-tron GT and RS e-tron GT sedan later that year. In 2023, Audi drove in the Q8 e-tron and Q8 Sportback e-tron to India.
But Dhillon said that Audi exhausted its initial quota for the first lot of EVs, and is now in the process of working out something new.
However, more than EVs, a big concern for luxury carmakers is that the segment isn’t growing as much as it should have. Dhillon said that the luxury segment in India remains relatively small – about 50,000 to 52,000 cars – and has remained somewhat stagnant.
The China factor
Automotive analysts told FE that Volkswagen’s wait-and-watch strategy also involves the global competitive landscape. “Chinese manufacturers have moved significantly ahead in EV technology, posing a global threat. While India remains somewhat insulated by trade rules, the Volkswagen Group is watching these developments closely,” an analyst said. “In China, the group has adopted a China for China strategy, developing localised products that they believe will eventually allow them to catch up technologically.”
Ultimately, the group’s leadership maintains that they will bring EVs to India at the right time. Instead of chasing immediate numbers in a market where the transaction price of luxury is rising and infrastructure is still maturing, Volkswagen is focusing on a long-term play that aligns with India’s specific timeline for electrification. For now, the group is prioritising business sustainability over a premature EV blitz.
