Czech automaker Skoda looks to expand its model range, including an electric car, in India while also leveraging its manufacturing footprint in the country to cater to various global markets, including Europe, as India nears a free trade pact with the EU, a senior company executive said on Tuesday.
Terming India as the most important non-European market for the Mlada Boleslav-headquartered firm, he noted that the group is “looking at it with a lot of hope and good perspective”, while trying to figure out which products to introduce to the world’s third-largest automobile market.
“India for us is the most important market outside of Europe…I think it’s the country that’s the least affected by all the turmoil, there is good economic growth, good demographics, and good prospects for the future,” Skoda Board Member (Sales & Marketing) Martin Jahn told PTI in an interaction here.
He noted that it takes some time to understand the customers in a big country like India, and the automaker is fixing the issues and developing cars in India for India.
“We have to bring an electric car to India. We have not decided which one yet, but this is something we need to do. And then also in the lineup, we have a small SUV, a midsize SUV and then the big SUV. So something in the middle would also be an opportunity,” Jahn stated.
“So we are well aware of the gaps in India. We cannot give any specifics, but we are reviewing all the options and want to grow and bring new models to India,” he added.
Jahn said the company aspires to grow its market share in the country, but at the same time, it needs to be profitable as well.
“It’s not only about market share, it is about market share, profitability, and customer satisfaction,” he added.
Skoda India Brand Director Ashish Gupta noted that the company has lined up 10 product actions for 2026 with plans to expand market penetration to 90 per cent from the current level of 80 per cent by expanding into smaller towns and deeper into existing markets.
He noted that the company expects to grow in double digits this year after closing 2025 with all-time high volumes.
Elaborating on the exports, Jahn said that the automaker is looking to commence exports from India to Europe after the conclusion of the India-EU FTA.
The automaker already exports from India to various markets in North Africa and the Middle East. It has also commenced assembling the Kushaq SUV from completely knocked-down (CKD) kits imported from its logistics hub in Pune.
The FTA would also enable the company to import certain models from Europe to India, Jahn said.
“We are looking at maybe in the immediate term of export from India to Europe. Nothing has been finalised, but it’s an option,” Jahn stated when asked about the impact of the impending India-EU FTA.
The agreement may also allow the automaker to import a bit more cars to India, he added.
“It won’t be much in terms of volume, but since Indian customers love our European cars, I think it will be a nice addition to our portfolio,” Jahn said.
“We definitely hope that the FTA will be positive for us,” he added.
India and the EU are very close to concluding negotiations on the proposed free trade agreement (FTA), with discussions underway to resolve some of the remaining issues.
“In Vietnam, last year, we opened CKD production of Kushak and Slavia. So, yes, the Indian products, I think, are very well suited for many non-European markets, and we want to use India as a base,” Jahn stated.
When asked about the pre-budget wishlist, Jahn noted that the automaker is eagerly awaiting what the Indian government will decide in terms of electric mobility.
“We have seen in Europe, overambitious political goals for electric mobility. So the only wish would be that the political decisions are based on market and customer reality and reflect what’s possible,” he added.
He noted that some countries have been pushing very strongly for electric mobility, but it hasn’t materialised as expected.
“We just believe that the Indian government will be making wise decisions taking into consideration the wishes of the Indian customers and the possibility of the Indian infrastructure and the economy,” Jahn added.
Skoda on Tuesday unveiled a new version of its mid-sized SUV Kushaq.
“The updated Kushaq reinforces the importance of India as the springboard for Skoda Auto’s strategy to grow our international markets. The Kushaq has rapidly established itself with customers in India and as an export to ASEAN and the Middle East. Now we are setting the next benchmark for the model’s overall value proposition,” Skoda Auto CEO Klaus Zellmer said.
Together with the Kodiaq and the Kylaq, Skoda offers an SUV fleet on the Indian market that caters to significant segments and price points, he added.
“Taking the Kushaq to the next level creates the opportunity for additional demand and further growth in our most important market outside Europe,” Zellmer stated.
