European brand, Skoda may consider making further investments under the new EV policy if the government modifies it to consider investments already made by the company in the country so far. Another feature, global automakers like Skoda are keenly watching before they make up their mind is whether the changes also include plants which are a mix of internal combustion engine (ICE) and EVs.
“We need to understand from the government which way we should go. There are some open questions on the policy where some fine tuning would really help. Hopefully by September this is finished and then we will be able to say if we are joining or not,” Petr Janeba, brand director, Skoda Auto India, told Fe.
The statement comes in the context of recent reports and discussions within the government that the policy needs to be broad-based to include brownfield as well as greenfield investments. This is because several global automakers have already made investments in India and are assembling their cars here and gradually increasing the localisation content also.
However, the EV policy announced in mid-March takes into account only fresh investment – a minimum of $500 million (Rs 4,150 crore) – to qualify for benefits like importing completely built-up-units at a concessional import duty of 15% (against 70% and 100%) for vehicles costing more than $35,000, for a period of three years.
This was ostensibly done keeping in mind that Tesla would set up its manufacturing base in the country. However, with no word from the company in the past four months, the government is considering certain changes so that other global manufacturers can become part of it.
Since, Skoda is considering launching multiple electric vehicles, it would be keenly watching any modifications made in the policy, and accordingly firm up its decision. The company is trying to finalise its product line-up for the medium term which includes a few EVs which are on sale in Europe.
“We have six EVs in Europe (including those under development). But we will have one specific EV which we are developing for India. This EV will be for the local as well as for the export market. This will be the seventh EV for Skoda and it will be made in Pune in 2027,” Janeba said.
This will be one of the earliest instances that an EV will be made in India by a global carmaker which is not manufactured in any form outside of the country. Other EVs being considered by Skoda will be either in fully imported form or in parts that will be later assembled here.
Skoda has planned to launch at least one European EV in India next year, Enyaq. If both the models benefit from the EV policy then they will be priced substantially lesser than their fully imported price. “This is the missing piece of the puzzle which will help us in our final decision,” Janeba added.
The Skoda Envaq is a five-seater sport utility vehicle, which was showcased at the Bharat Mobility Show earlier this year and is the first all-electric SUV by the Czech auto brand. Priced at £44500 in the UK, the Enyaq has a drive range of 370-550 km and a top speed of 160 km/hr.
A second model Elroq is also under consideration for India. This model will be priced lower than the Enyaq and will be available in four versions with a drive range of up to 550km. The Elroq will debut in Europe in a few months.
