Policy continuity, infrastructure growth and a stronger electric vehicle ecosystem in the upcoming Union Budget will be critical for sustaining momentum in the automotive sector, according to Skoda Auto Volkswagen India MD and CEO Piyush Arora.
The Pune-based brand, which manages the Indian operations of six brands, Skoda, Volkswagen, Audi, Bentley, Lamborghini and Porsche, also emphasised the importance of customs reforms and bilateral trade agreements to support global integration.
In an interaction with PTI, Arora said the GST reforms introduced last year led to the revival of the domestic passenger vehicle industry.
“And from that point of view, if there are some important duties in the electric (vehicle) space that can be addressed (in the Budget) going forward, it would help… Continuity is extremely important for our sector, along with further focus on infrastructure growth and building up the EV ecosystem,” he said.
Besides, customs tax reforms would help multinational companies manage both exports and imports, Arora stated.
On regulatory issues, he pointed out that there has been a delay in the final notification of the latest Corporate Average Fuel Economy (CAFE) norms, and said a clear roadmap and consistency across technologies would be a welcome step.
On the India-EU free trade agreement, Arora noted that it could open opportunities for brands like Skoda, Volkswagen, Audi, Porsche and Bentley.
“The bilateral trade agreements help to bring products and technologies much faster into the relevant market, he added.
“We have always been a proponent of bilateral trade agreements… Auto industry is one of the cornerstones of the India-EU trade agreement… we do believe that if we have a bilateral trade agreement, it will give us an opportunity as a group,” Arora said.
But at the same time, the group’s strategy is local for local and developing products in India, for the Indian market and exporting, he added.
“So volume push for us will come from this strategy, but at the same time, we can create opportunities for customers to look at some of the global products at reasonable price points. We can bring in new technology, bring certain products for the enthusiasts,” he said.
Elaborating on the group’s focus on localisation, he noted that the strategy is to develop products in India with deep localisation, catering to both domestic and export markets.
“From the very beginning, we have engaged engineering skill sets and supplier communities in India. Exports to Vietnam of India-developed cars are one such example,” he said, adding that the company will continue to build products relevant to Indian consumers while leveraging export opportunities.
Arora said the Skoda brand sold a record one million cars globally last year, with India emerging as one of its key markets alongside Germany, the Czech Republic and the UK.
He noted that the overall passenger vehicle market is expected to grow 5-6 per cent in 2026, with Skoda Auto Volkswagen aiming to capture a higher market share through new product launches.
Arora said electrification remains a focus area, as electric vehicle penetration levels in India are still low.
“Price parity between alternate fuel vehicles and EVs, charging infrastructure and range anxieties are factors that will define the pace of adoption,” he said, while noting that the group is looking to identify an electric car which could be introduced in the market.
