Archive · 15 Sep 2026
Škoda-Volkswagen Weighs Three Routes for India’s Mass-Market EV
Škoda Auto Volkswagen India wants to sell more electric cars in India.
It is studying three choices: importing cars, assembling them in India, or building a highly localised model.
Imported cars could arrive faster than a new India-specific vehicle.
The company has not chosen a model or announced a launch date.
Its leader expects electric cars to become a much larger part of India’s market by the end of the decade.
The company’s sales grew strongly in the latest financial year, although July sales fell.
Volkswagen already builds vehicles in India with more than 90% local content for some products.
It is also considering partnerships and wants to expand in faster-growing areas such as electric mobility.
Škoda Auto Volkswagen India is evaluating imported, locally assembled and highly localised EVs for India.
The company has not committed to a timeline or selected a model for its next Indian EV launch.
Managing Director Piyush Arora estimates India’s EV penetration could rise from 7–8% currently to 17–18% by decade’s end.
Volkswagen Group’s FY26 retail sales rose 29.8% to 110,000 units, lifting its market share to 2.34%.
The group has achieved more than 90% localisation under its India 2.0 programme and exports about 30% of production.
- Who
- Škoda Auto Volkswagen India, led by Managing Director and Chief Executive Officer Piyush Arora.
- What
- The company is evaluating imported, locally assembled and highly localised EVs for the Indian market.
- When
- The evaluation is ongoing; no timeline has been committed for the next EV launch. EV penetration is projected to reach 17–18% by the end of the decade.
- Where
- India, with vehicles also produced for export to more than 40 countries.
- Why
- The company has limited participation in alternative powertrains while a growing share of India’s passenger-vehicle growth is coming from them.
- EV strategy
- The company is considering fully built imports, local assembly and highly localised products.
- Next EV timeline
- No launch timeline or specific model has been finalised.
- Projected EV penetration
- Piyush Arora estimates penetration at 7–8% currently and 17–18% by the end of the decade.
- FY26 retail sales
- Volkswagen Group sales rose 29.8% year-on-year to 110,000 units from 84,810 units.
- FY26 market share
- The group’s market share increased to 2.34% from 2.04%.
- Localisation
- India 2.0 programme products have achieved more than 90% localisation.
- Exports and capacity
- About 30% of annual production is exported, and combined Indian manufacturing capacity is around 300,000 vehicles.