The company sold a total of 72,665 units last year (35,166 units in 2024), with the Kylaq accounting for around 45,000 units.Škoda India Brand Director Ashish Gupta has said that adoption of electrics in India is currently led by regulatory requirements and not by strong consumer demand, adding that the contribution of greens to total vehicle sales is expected at around 18 per cent by 2030, with the vast majority of industry numbers still likely to come from internal-combustion engine (ICE) cars.
Gupta said Škoda is also planning on introducing EVs in India, but refused to give a confirmed timeline. “We are definitely working on it. It’s too early to give a specific date, but we intend to stay a relevant player in India, and to do that, you have to get into electrification. It’s in an advanced stage of planning,” he told Times Internet.
Škoda has been riding high in India after registering a growth of over 100 per cent in car sales in 2025, led by the Kylaq mini SUV. The company sold a total of 72,665 units last year (35,166 units in 2024), with the Kylaq accounting for around 45,000 units.
As he launched the next-gen version of the premium Kushaq SUV (comes with a petrol engine), Gupta said the company is also assessing the EV market, though indications of a strong organic demand are still missing.
“Five years ago, everyone expected the (car) market to be 10 per cent electric by now. Instead, we are at about 4-4.5 per cent. With the GST changes, we see that the big push for electrification has also died down a bit. Electrification at one time was trending at about 6 per cent of the market. But last year, it also ended at around 4.5 per cent. So, electrics are definitely not playing out the way everybody forecasted it to be.”
However, Gupta said that regulatory needs (likely to be the proposed CAFE or Corporate Average Fuel Efficiency norms), are likely to prompt carmakers to push new EV models in the market. “… the regulatory framework will eventually force the move toward electrification. Currently, I feel electrification in India is more regulatory-driven than consumer-demand driven.”
On the other hand, the market for internal combustion (ICE) cars will continue to stay strong. “By 2030, the total market is expected to be at between 5.5 million and 6 million cars. Even by the best estimates, if the EV penetration reaches 18 per cent, that means 82 per cent of the market is still ICE. To be relevant, you have to be present in that large 82 per cent while having a foothold in the 18 per cent EV segment. That’s the game plan. You cannot bucket yourself into one corner, but (have to) be present across powertrains.”
Asked about the India-EU FTA and the opportunities it can throw up, Gupta said that Škoda believes that the trade agreement – which will take over a year to be implemented on the ground – will not only enable import of European cars to India at a lower duty, but will also create opportunities for export of India-made cars. “While everybody’s talking about how India will open up to global products, but I see trade happening both ways. I see it as an opportunity for us to use India as a base to export back to Europe. I see trade happening both ways. That is another opportunity that will open up.”
He said that the Kylaq, the company’s biggest volume model in India, could also be exported to Europe once the FTA gets implemented. “The EU FTA could open doors for products like the Kylaq. There are naturally markets in Europe which are conducive to these kinds of cars. So, those are opportunities which I think will open up.”
Asked whether the FTA may result in a dip in India investment plans by Škoda as products could be imported from Europe at lower duty, he said success in India is possible only through localisation.
“The only way you can succeed in India is by producing locally. The FBUs (fully-built unit imports) will not change the game for any manufacturer in that regard. There are safeguards built into the FTA; for instance, the benefits apply to cars above 15,000 Euros. Even if the tariffs go down to zero, then also the minimum import price is 15,000 Euros. If you translate that to an “on-road” price in India, you are around Rs 20 lakh. So, the market itself isn’t large enough to support huge import volumes coming in. Local production remains the priority.”
On the impact on business in India due to the geopolitical tensions and war in Iran, Gupta said Škoda has not seen much of an impact on demand so far. “… in terms of how the business is going regarding inquiries and bookings – we do not see that much impact yet. But you can feel it in your bones that there’s a little bit of uncertainty. How much of a long-term impact it will have is anybody’s guess, but uncertainty is never good for business.”
On possible disruptions in the supply chain, he said production schedules are currently under control. “The disruption is definitely there, but it is not leading to disruptions in production. It can lead to delays, but so far we are unaffected. However, if this situation prolongs, we will start having effects. For now, we have enough supplies and stocks to manage our production.
