Czech automaker Skoda Auto is reportedly planning to develop and launch a sub-RS lakh electric vehicle model in the Indian market, car&bike reported.
The local automotive news platform indicates that the planned affordable model will be an electric SUV following the launch of the Skoda Enyaq.
Model details
Skoda Auto’s Board Member for Sales and Marketing, Martin Jah, expressed the need for the automaker to market an entry-level electric SUV for Indian customers.
As mentioned, the model will sell for just below Rs 20 lakh.
“We have to come to India with an entry BEV. We will now be bringing Enyaq, which is a premium car, but an entry BEV or more affordable BEV than Enyaq, it is a necessity for us in India.”
Martin Jahn, Skoda Auto’s Board Member for Sales and Marketing
How about the platform?
The senior Skoda official further told the publication during the company’s launch event in Vietnam that it is considering “several potential partnerships.
Skoda is reportedly considering employing Volkswagen’s MEB platform or partnering with other companies for the model’s architecture.
“For the entry EV’s architecture, we are exploring possibilities; it could be either MEB adjusted [modified] or it could be in cooperation with another partner. As such, it would have to be somewhere between €15,000 to €20,000 (that’s equivalent to Rs 13-18 lakh).”
Martin Jahn, Skoda Auto’s Board Member for Sales and Marketing
It is worth noting that VW Group is currently negotiating with Indian automaker Mahindra for a potential collaboration on affordable EV models for the local market.
The report suggests that Skoda may consider using Mahinda’s latest INGLO platform.
Skoda may establish a local production
Skoda may need to locally produce the planned sub-Rs 20 lakh EV to hit that price target. However, Mr. Jahn also has concerns over battery prices, which usually account for about 40% of the EV’s overall cost.
“Localisation is one thing. The most important issue is actually the battery price, the battery cell, and the battery package. That is the fact that influences the price of the EV the most..
There are not too many good entry BEVs around the world that make money because if they are cheap, they’re usually not a big money-maker, which is also not [feasible] in the long-term. We would like to have a solution that is affordable but also has profit potential.”
Martin Jahn, Skoda Auto’s Board Member for Sales and Marketing
According to the report, Mahindra will acquire critical MEB platform parts like electric powertrain, battery systems, and cells from the VW Group. Mahindra also aims to domestically manufacture battery cells.
See Also:
- Skoda to launch first EV offering in India by 2023
- Czech automaker Skoda to launch three BEVs by 2026
- SKODA tops the ‘Auto Trophy 2022’ with five wins
- German EV sales grew by more than two-fold in August 2023
- Mahindra to partner with VW for MEB platform and parts supply
The development of the entry-level EV for the Indian market is expected to take about two to three years in minimum. It will certainly shake up the market, which local brands like Tata and Maruti Suzuki currently lead.
In hindsight, Quartz reported that Skoda sold 53,721 vehicle sales in 2022, up by more than twofold from the previous year. At that time, Skoda brand director Petr Solc stated at a press conference that it was planning to export its EVs in the country, starting with Enyaq.
