Your EV forecast earlier was 30% by 2030 for the Indian market. What’s the new estimate?
We’ve corrected that. We’re now planning for about 18% EV penetration by 2030. The infrastructure isn’t there yet, and the appetite just isn’t what we expected. The people buying EVs today? Mostly, fleet operators or buyers focused purely on operating costs. It’s not yet a high-aspiration segment. So for now, the mix will be lower than we had hoped for.
What’s your roadmap then? Is Škoda still investing in EVs here?
Of course. We’re running test vehicles under the Škoda brand, and we already have electric cars from Audi and Porsche on Indian roads. But real scale will only come when charging infrastructure, consumer mindset, and pricing all come together. Also, we can’t ignore CAFE (Corporate Average Fuel Efficiency) norms. If we don’t offer EVs, we’ll have to pay penalties. And nobody wants that.
You said the company misread Indian expectations. What did you get wrong?
We underestimated how fast Indian consumers would evolve. When we locked product specifications five years ago, we prioritised structure, safety, and ride quality. And we nailed those. But things like ADAS ((Advanced Driver Assistance System), connected tech, and powered seats back then weren’t seen as must-haves. Today they are. That’s on us. Big learning.
Was that a cost call? Or a judgment call?
Both. These decisions were made years before launch. At the time, digital connectivity didn’t feel critical. If we had to do it again today, we’d make different calls. But once a development path is locked in, you can’t just turn the ship overnight.
Have you caught up now?
We’ve covered a lot of that ground. Cars like the updated Taigun, Kushaq, and Kylaq are better equipped. But we still have to balance localisation, volumes, and cost. We’re not selling 4–5 lakh units a year like some others. So we have to be sharp about what we bring in and how.
The Korean brands like Hyundai and Kia moved quickly on features and tech. Do you think they shaped expectations early?
I’ll give them credit, they moved fast. They brought in a lot of features very early, and consumers picked up on that. Maybe in some cases it was a bit much—too many things, even slightly jarring, but they definitely influenced what buyers came to expect. We took a more balanced route by putting engineering, build quality, and safety first. But yes, when it comes to feature velocity, they were ahead. No doubt about that.
What’s your view on hybrids? You’ve been critical of them but now say they’ll be part of the mix.
Yes, we’ll have hybrids, but let me be clear: I personally don’t think they’re the best use of consumer money. You’re carrying two systems—engine and battery—so you compromise on space and efficiency. I get that hybrids are being pushed, and they help with fleet averages. But I believe either go with ICE (internal combustion engine) or EV. Hybrids are a halfway solution.
You’ve entered the sub-4 metre segment with the Škoda Kylaq. Isn’t that a shift away from your premium image?
I wouldn’t call it a downgrade. The sub-4 metre segment is a defined space with its own tax logic. Entering it doesn’t mean we’re going downmarket. It just opens us up to a whole new set of consumers. And let’s not forget, we just launched the new Kodiaq, a premium SUV. So no, we’re not giving up on premium. We’re expanding the funnel.
Škoda and Volkswagen operate in overlapping price segments in India. How do you avoid cannibalisation?
Globally, Škoda and Volkswagen are positioned differently, and we’ve kept that here. VW leans toward understated premium, SUV-led, elegant. Škoda is more urban, younger in tone. And our retail networks are completely separate. That’s the real unlock. Yes, there’s some overlap—Kushaq vs. Taigun, Slavia vs. Virtus—but the product DNA, communication, and retail are distinct enough to manage it.
What role do sedans, SUVs, and EVs play in defining each brand’s identity here?
Škoda is the urban enabler—it’s for people who explore cities. Volkswagen is for families, with a slight premium touch. The Tiguan R Line is a good example, with great proportions, clean design, and very refined. We believe design is something you can charge for. It’s not just about features. It’s about how the whole package feels — fit, finish, and even smell.
There’s still a perception that Škoda cars are expensive to maintain. How are you tackling that?
With the Kylaq, we’ve introduced a three-year maintenance package, trouble-free, worry-free. That’s a clear signal. You get upfront clarity on the cost of ownership. We’ve also made warranties extendable. Look, the perception isn’t accurate anymore, but we know it’s still out there. And perception is reality. So we have to counter it, there is no other choice.
How do shifting regulations—E20, tariffs, emissions—impact your India plans?
A lot. Exchange rate volatility hits us daily—we source many parts from Europe in euros. E20 (it mandates 20% ethanol blending in petrol-run cars) is another example: it was announced without clear enforcement timelines. When you’re developing cars years in advance, ambiguity is dangerous. And since we also export from India, we need alignment with global norms too. My Indian colleagues handle the local nuance better than I can, but yes—we need more predictability from regulators.
How are you approaching Tier-II and Tier-III markets?
With Kylaq, we expect to triple volumes. You can’t do that with just the top 10 cities. So yes, we’re expanding into Tier-II and Tier-III. We’ve seen good interest from dealer partners, and we’re tweaking our marketing strategy to speak to those buyers differently. Škoda has real room to grow there.
And your biggest priority over the next two–three years?
Product. That comes first. Everything else—price, people, place, promotion—only works if the product is right. The Kylaq winning Car of the Year is great, but now we have to back it up with consistent execution. Better decisions, sharper focus, tighter delivery. That’s the game.
