Martin Jahn, Board Member, Sales & Marketing, Skoda Auto, believes that India “basically is the only continent or the only big country in the world that has positive potential” in today’s volatile world.
According to him, geopolitical tensions are on the rise globally, with conflicts breaking out at a frenetic pace, combined with the absence of a clear technology roadmap and fluctuating energy prices. In this backdrop, India is in a relatively calmer place with steady rates of growth.
“India has established itself as a strong power that has a say in world politics and is strengthening relationships with other continents. We are also eagerly awaiting the free trade agreement with the European Union, as this is something that will determine our future,” Jahn told ET Auto at a recent Skoda event in Kochi.
He said this year would be particularly dynamic with “many things happening”, especially from the American end, where President Donald Trump has been throwing up a surprise and jolting the rest of the world almost every day. It remains to be seen what impact all this will have on the global economy in the coming months and years.
Caution is the order of the day
“At the moment, it is not a good idea to take very quick steps and rush into something I think the world will start calming down only next year onwards. We will also need to see how the Chinese economy develops. I believe this will be a very turbulent year and we must observe events carefully,” said Jahn.
Even as people talk about Africa’s immense potential, he continued, it is not developing as quickly as South America, which is “sort of stable”. China, in turn, continues to experience “some turbulence,” and Europe is stable but not growing. “For the future, I think it is better to wait a little bit and then make the right bet,” he added.
For now, Skoda is in a happy place with the right product range. “We have everything going in Europe and India. We have new models for this year and are very well established,” said Jahn.
The carmaker is therefore enjoying the moment, having emerged “extremely successful” in Europe, where it crossed the one-million-car threshold and became the Number 3 brand.
At the moment, it is not a good idea to take very quick steps and rush into something I think the world will start calming down only next year onwards.Martin Jahn, Board Member, Sales & Marketing, Skoda Auto
Dispelling the expensive image in India
As for India, it is now the leading European brand, doubling its sales in 2025.
“We had an image in India in the past that our service was too expensive but it is not true anymore. We provide parts today for a very good price. We also have an extensive network and are coming closer to the customer with attractive service packages,” said Jahn.
According to him, the human touch is an important principle of the Skoda ecosystem, and every effort is made to respond to customers and check what they want in terms of price and equipment. “There is so much to do in India with a growing base of customers and dealers. We have to train people and provide them with everything they need,” he explained.
Back home in Europe, customers are aware of this inherent strength of Skoda, and that is one of the reasons “why they choose us over Chinese brands”. It is therefore important to strengthen this image in India as well.
India to Vietnam saga
Earlier last year, Skoda launched operations in Vietnam, where India shipped out the Kushaq and Slavia. While Slavia is doing “really well”, Kushaq has been facing more challenges in Vietnam’s SUV arena.
“Everybody has an SUV there but there are not so many sedans, so Slavia is even more successful than we thought. We sold over 1,300 cars which is good for the first year,” said Jahn.
The Vietnamese market is “unfortunately” not growing as quickly as Skoda had expected. “We had high expectations, but it is just kind of stable and not growing very rapidly,” he added.
The company is expanding its dealer network in Vietnam, which is “a good step for us” toward starting CKD production of Indian cars outside the country. It is still looking at other markets in ASEAN and checking how fast they can grow for electric. These include Indonesia, Thailand, Malaysia and the Philippines.
Chinese challenge in ASEAN
The challenge facing Skoda lies in a “very strong push” coming from Chinese brands across the region.
“In ASEAN, we need a bit more time to look at further development. A couple of years ago, there were big expectations of growth coming from these markets which is not happening now,” said Jahn.
At the same time, many Chinese brands are coming into these regions, which translates into formidable competition, and the way forward for Skoda is to make a very “thorough evaluation before we take new steps”.
“We are focusing more on the Middle East, where we just opened our first dealership in Saudi Arabia. We are also bringing Indian models here as imports,” he added. While expanding into ASEAN remains a top priority, it makes more sense to first go “where we see bigger chances,” such as the Middle East and North Africa.
According to Jahn, Chinese electric vehicles are very strong in ASEAN, whereas this is not the case in the Middle East or India, where entry barriers remain stiff. “Everything depends on the region concerned, where there are different levels of acceptance for Chinese brands,” he said.
For many reasons, society is not ready to switch to electric as quickly as politicians in Europe thought.Martin Jahn, Board Member, Sales & Marketing, Skoda Auto
Standing out in Europe
In Europe, their growth is not as strong as expected, and Skoda’s experience shows that it is important to offer something special as a market differentiator.
“Our Elroq is the second best-selling electric car in Europe and is very practical with good handling. Customers sometimes do not need the latest features which are nice for a minute or for a week. Eventually, you want a car that provides good space and ergonomics,” explained Jahn.
The bottom line is to deliver a solid vehicle for the family, accompanied by good service.
“We are strengthening our dealer network and service capabilities. That is also what we are doing in India,” he said.
The push to electric remains an “interesting” topic of discussion, with a “full push” happening in China, while the US is “going completely away” from this space. At a political level, the push in Europe was even stronger than in China, but now “politicians are also beginning to see that it is not so easy”.
Consequently, the transition to electric is no longer as rapid, with rules and legislation changing the name of the game. “For many reasons, society is not ready to switch to electric as quickly as politicians in Europe thought. We are now observing other regions and what they will do,” continued Jahn.
Treading carefully with electric
A whole lot of questions are constantly being raised about infrastructure, customer sentiment, costs, and so on. A couple of years ago, it looked like the whole world was going electric. “Now it is not like that any longer and we have to be careful since this is a capital-intensive business where we are investing big money,” he said.
Any wrong decision about the car line or technology can be risky, and “you are stuck with it” for life. Skoda is now “maybe more careful” about looking ahead to where the world will go because this electric transformation is clearly region-specific. Not every country will move at the same pace or philosophy, he added.
CNG is an option, but only when there is a tax advantage. “We cannot say that universally, CNG is a solution. It was (a solution) in Europe at one point in time. We had very good technology but now it is dead because it is not fiscally supported,” explained Jahn.
India’s policymakers have also articulated their intent to adopt flex fuel, prevalent in South America, as another clean alternative.
From Skoda’s point of view, it is ready to deliver any technology globally when politicians and the government say “this is what we prefer and this is what we will also support” in terms of taxes and the whole environment.
“But we do not get these clear signals. Therefore, the world is extremely volatile,” he signed off.>
