Skoda Auto Pushes for Inclusion of Hybrid Vehicles in New EV Policy

Skoda Auto, leading Volkswagen's India investment strategy, is evaluating India's new electric vehicle (EV) policy but is pushing for the inclusion of hybrid and plug-in hybrid electric vehicles (PHEVs). The company argues that India's charging infrastructure and consumer sentiment pose challenges for the widespread adoption of pure electric vehicles. 

Martin Jahn, Skoda’s global board member and head of sales & marketing, highlighted China’s model, where half of the new energy vehicle (NEV) market comprises hybrids or range extenders. He believes that India's transition to EVs will be slower than expected due to concerns over range anxiety, limited charging infrastructure, and consumer hesitation. According to him, the best approach for India might be a combination of battery and combustion engine vehicles rather than an immediate shift to fully electric cars. 

India's new EV policy offers subsidized import duties for manufacturers willing to invest at least $500 million. Skoda is currently assessing its options, including whether to import EVs or set up local production. The company’s final decision will depend on additional policy announcements expected in the first half of the year, which will shape its strategy on which models to introduce and how quickly they can be brought to the Indian market. 

As part of its expansion plans, Skoda aims to double its sales in India in 2025, targeting over 100,000 units compared to 36,000 in 2024. To support this growth, the company plans to introduce several new models, including the electric Enyaq, the Superb sedan, and the Kodiaq SUV. Additionally, Skoda is expanding its retail network from 277 to over 350 outlets, reinforcing its commitment to the Indian market. 

With strong momentum and strategic planning, Skoda is optimistic about its growth in India. However, its emphasis on hybrids alongside EVs could influence future government policies and shape consumer adoption trends in the evolving automobile landscape.