The Czech automaker Skoda Auto has stated that India will act as a hub for the company's exports, beginning with the delivery of vehicle kits for assembling in Vietnam the next year.
Skoda Auto is enthusiastic about attaining double-digit growth this year, with a staggering 125% increase in vehicle sales year over year, reaching 53,721 units in 2022. Renowned brands like Skoda Auto, Volkswagen, Audi, Porsche, and Lamborghini are present thanks to Skoda Auto Volkswagen India Pvt Ltd (SAVWPIL).
Petr Solc, Brand Director at Skoda Auto India, spoke with PTI and expressed his perspectives. “India is an absolutely important market as part of our regional strategy of Skoda Auto, and India will become an export hub for Skoda,"
According to Solc, Skoda Auto is already shipping to the Middle East and North Africa, while Volkswagen is currently exporting vehicles from India to Mexico and South Africa. He added that starting the following year, they would start exporting vehicle kits for Vietnam to assemble. Solc emphasised the importance of export to Volkswagen and Skoda's strategies.
In the previous year, Skoda Auto India delivered over 50,000 vehicles for the first time on the domestic market, marking a significant milestone, according to Solc. He stated that the company aimed for double-digit growth and wanted to expand in line with or perhaps outpace the market. Due to the introduction of the Slavia sedan, which had a unique impact as a new model, Solc observed that 2022 was significant for Skoda. With the Slavia sedan and Kushaq SUV are now on the market, they can have both models for the entire year.
As a result of better supply, Solc emphasised that the revised 7-seater SUV Kodiaq will support the company's expansion goal. Christian Cahn Von Seelen, the board member for sales, marketing, and digital at SAVWPIL, referred to Audi's success in the domestic premium luxury car market as "impressive" in 2022 as compared to the prior year. He did point out that, even in Europe, problems with chip supply continued to impede their development seriously.
“So the growth of Audi is impressive, and we are definitely planning to continue…So as much (as) I think, I can say we will see loads of new product introductions here on the other side.” According to Solc, the company's entry into the Indian EV market will depend on how well that industry is developing there. In its newly released EV strategy, Skoda outlined intentions to gradually roll out six electric vehicles by 2026.
“We as a manufacturer and Skoda, will be ready. And if we see good traction, we are talking about the prognosis that the car market or the EV can go within 5-10 years, up to 20, maybe 30 per cent. We don’t know necessarily,” he said.
“So this could be part, we would like to be also within that range, but depends again, on the response. If we see more manufacturers going, there is an infrastructure built here and there’s an acceptance from the customers to buy electric cars, and we will be ready,” he mentioned.
He mentioned that the company is currently discussing the EV models that should be introduced in India in the future.
“And if we see the potential in the market, we will bring them as well. So I cannot say necessarily what the percentage will be. But if the market is going towards more than 20 per cent of the electric vehicles of the total market, we would like to penetrate within the EV segment,” Solc added.
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