India has become a key focus market for Volkswagen Group: Klaus Zellmer, Global CEO

What is your view on Indian market performance in 2022?

We have recorded our biggest year ever in India within the first eight months of 2022. These outstanding results have enabled India to rank among the top three markets for Skoda Auto globally in the first half of this year. A big contribution to fulfilling our global ambitions is coming from India. We are well on track to more than double our sales in 2022 over last year.

Our success gives us tremendous confidence for a long-term, sustainable journey in India, which is an integral part of all future strategy planning.

What are the next steps for Skoda in India, beyond the India 2.0 Project?

With the success of the India 2.0 project, India has become a key focus market for Skoda and the whole Volkswagen Group. Not just on the domestic sales front, but also as an export hub. The production sites in India are among the best in the Group.

From a group perspective, we are already discussing our next strategic move. We have reported record sales numbers, but there is still room for growth in the future. We are in the process of discussing the way forward to build our portfolio.

India is completely changing; it is moving very rapidly towards the battery electric game. The way forward for Skoda in India will be a balance between ICE and EVs. We have brought in some Skoda ENYAQs to India, which are being tested across the country.

On the way forward, we need to find the sweet spot in terms of product mix and timing in introducing BEV.

Can Skoda match the frenzied pace of development at rivals?

We have to grow step by step. First, we need to consolidate our India 2.0 project, and then finalise the next steps. Today, Skoda products address 20% of the Indian market, in terms of the segments we are present in. We aim to more than double this in the mid-term.

What is the potential of bringing the MEB A0 EV architecture to India?

Skoda’s route for EVs in India will most likely be — first FBUs (imported fully built units), then parts and components (assembly), and eventually local production. Apart from this, localising core MEB components in India is pivotal for scale.