Skoda Auto Volkswagen Group focuses on product intervention, localisation to grow market share in India, ready for higher ethanol blends

European car maker, the Volkswagen Group, having six brands in the Indian market which includes Škoda, Volkswagen, Audi, Porshe, Bentley and Lamborghini, will be focusing on enhancing its product portfolio and growing localisation to drive growth going forward.

Describing India as an “extremely important and strategic market” for the automobile Group, Piyush Arora Managing Director & CEO, Skoda Auto Volkswagen Group India in an interview stated product intervention and tapping into Indian engineering talent to develop future software-defined vehicles and connectivity will remain key to the Group’s India strategy.

“We have seen a good amount of growth momentum in the passenger vehicle space, but the market is being driven highly by product intervention,” he said ahead of the launch of the new Slavia sedan by Škoda Auto India.

Stating that the Group would introduce new products throughout brands, he said last year the it had rolled out Octavia RS, Golf GT, Tiguan RS.

Under Audi it will bring in the new Q3 which will be launched towards the end of this year. “The A5 is coming in and also we are looking at introducing the flagship Audi the Q9 which we want to bring into the country,” Mr Arora said.

He stated Bentley and Porsche are doing “extremely well” in terms of their segment and last year the Group sold 113 units of Lamborghinis.

“We are looking product interventions at every brand. This very clearly indicates the commitment of the Volkswagen Group to the market in India and as we go along, we will bring the right product at the right time,” he stated.

Stating that the tariff challenges for the group for the U.S. market are substantial, he said the limited expansion happening in European market and the transformation happening towards electrification as well as competitive pressure in the Chinese market has put India at the “bright spot” for the Group.

“That’s how our group looks at it and all the brands look at it, so we are extremely committed and we also see great opportunity in India,” Mr. Arora emphasized.

He said though the India-UK FTA will benefit the Bentley brand, the upcoming India-EU bilateral trade agreement will provide further opportunity throughout its brands.

“We are looking at growth in India. We have grown almost 7 to 8 percent for Škoda brand in the first half of this year. We hope to continue that momentum. The market has grown also in the alternate power trains this year, so you see substantial expansion happening in the CNG space and growth happening in electric vehicle space where we do not have product offering at this point in time,” Mr Arora remarked.

He said considering the expansion in India and the way the product and the market is evolving, the Group will evaluate the product portfolio offering and the gaps in its portfolio.

“We are evaluating alternate power trains whether it is electrification or offering a CNG product and we will bring in the products,” he stated.

On the E20 issue he stated all the company’s products have been developed for E20 compliance compatibility as well as compliance since 2020 and they can handle higher level of blending.

“The product which we are selling in the market is fully compliant with the E20 and being an engineering driven company, we always have certain safety margins in our design and development which we built in,” he remarked.

“And I can also mention that compatibility wise, our product can even take a little bit higher percentage of ethanol blending. So, maybe while there are tests which might be conducted for any higher grade of ethanol blending say E25, I can say that compatibility wise product will meet that requirement,” he emphasized.

“We always advise our customers to fill the fuel in the authorised fuel station where the chances of alterations are less and if there are alteration driven challenges faced by some customers, the oil marketing companies are addressing that,” he said.

Heb stated the Group was bringing a lot of product interventions.

“We are very hopeful that we will be able to participate in the growth which we are expecting in the festive season,” he added.