Skoda has announced plans to launch a budget-friendly electric vehicle (EV) in India by 2027, catering to the growing demand for electric cars in the country. The new EV is expected to be similar in size to the Kushaq SUV and will be manufactured at Skoda’s Aurangabad plant. The automaker is prioritizing localization to ensure competitive pricing, making the car more accessible to Indian consumers.
However, Skoda is cautious about rushing the project and is closely monitoring policy changes, such as the upcoming CAFE 3 norms and government taxation on EVs and hybrids. The company wants to ensure that the market for EVs in India grows significantly before proceeding with large-scale production.
Skoda emphasizes that deep localization is key to making the EV affordable. For this to be successful, it believes the Indian EV market must reach a larger scale. The company is confident that its products will be competitive, even as a later entrant into the EV market, with a focus on offering value without compromising quality.
Before launching the budget EV, Skoda will enter the Indian EV market with two premium offerings: the Enyaq EV and the Elroq SUV. Both models will initially be imported as Completely Built Units (CBU), with the Enyaq expected to receive a facelift by March 2025. If demand justifies it, Skoda may consider local assembly for these models.
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The anticipated budget EV will cater to India’s growing preference for larger vehicles, as it is expected to be a Kushaq-sized SUV. By the time of its launch, Skoda is expected to offer both two-row and three-row variants of the Kushaq, providing a strong foundation for the new electric SUV.
Skoda’s entry into the budget EV market will come as competition heats up with players like Maruti Suzuki, Tata, Mahindra, Toyota, MG, Honda, Hyundai, and Kia, all expected to offer mid-sized EVs in the coming years.