Volkswagen Group is looking to introduce an entry-level electric vehicle (EV) in India by the second-half of this decade, the CEO of its local unit said at an event on Thursday.
“We are actively working on an entry-level EV. It needs large investment. To justify a three-figure million dollar investment for the new product we need the volumes,” said Piyush Arora, CEO of Skoda Auto Volkswagen India.
Arora helms Volkswagen Group's five brands — Volkswagen, Skoda, Audi, Porsche and Lamborghini — in India. Among them, only Audi and Porsche currently sell EVs in the country.
“Penetration of EVs in India will not be as fast, so we are looking at the possibility of exporting that product.”
The carmaker could look at exporting the new EV to Southeast Asia, Gulf Co-operation Council (GCC) countries and North Africa, he said, as the group also looks to “leverage” the reducing effort required to export cars made in India.
“The regulatory and safety changes in India is making the country more globally competitive. Earlier, we needed more effort to produce cars for export from India,” Arora said.
Volkswagen Group, like larger rivals Maruti Suzuki and Hyundai Motor, counts India as one of its export hubs. While exports under the Volkswagen brand rose over 80%, Skoda's exports are up about fourfold so far this fiscal year.
The group's focus on EVs comes down to their favourable taxation structure in India, Arora said, but clarified that the company may introduce hybrid vehicles if it gets government support.
India taxes EVs at just 5%, while the levy on hybrids is as high as 43%, just below the 48% imposed on petrol cars.
The firm is also extensively testing the Skoda Enyaq electric sport utility vehicle (SUV) for a possible launch in India, Arora said, but did not disclose a timeline.
India is aiming for EVs to form at least 30% of passenger vehicles sales by 2030, which include small cars to sedans and SUVs, from just 2% so far this fiscal.
Volkswagen is working on an entry-level EV for India
Image: Sean Gallup/Getty Images
Volkswagen Group is looking to introduce an entry-level electric vehicle (EV) in India by the second-half of this decade, the CEO of its local unit said at an event on Thursday.
“We are actively working on an entry-level EV. It needs large investment. To justify a three-figure million dollar investment for the new product we need the volumes,” said Piyush Arora, CEO of Skoda Auto Volkswagen India.
Arora helms Volkswagen Group's five brands — Volkswagen, Skoda, Audi, Porsche and Lamborghini — in India. Among them, only Audi and Porsche currently sell EVs in the country.
“Penetration of EVs in India will not be as fast, so we are looking at the possibility of exporting that product.”
The carmaker could look at exporting the new EV to Southeast Asia, Gulf Co-operation Council (GCC) countries and North Africa, he said, as the group also looks to “leverage” the reducing effort required to export cars made in India.
“The regulatory and safety changes in India is making the country more globally competitive. Earlier, we needed more effort to produce cars for export from India,” Arora said.
Volkswagen Group, like larger rivals Maruti Suzuki and Hyundai Motor, counts India as one of its export hubs. While exports under the Volkswagen brand rose over 80%, Skoda's exports are up about fourfold so far this fiscal year.
The group's focus on EVs comes down to their favourable taxation structure in India, Arora said, but clarified that the company may introduce hybrid vehicles if it gets government support.
India taxes EVs at just 5%, while the levy on hybrids is as high as 43%, just below the 48% imposed on petrol cars.
The firm is also extensively testing the Skoda Enyaq electric sport utility vehicle (SUV) for a possible launch in India, Arora said, but did not disclose a timeline.
India is aiming for EVs to form at least 30% of passenger vehicles sales by 2030, which include small cars to sedans and SUVs, from just 2% so far this fiscal.
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