NEW DELHI, Jan 19: A comprehensive long-term approach towards the tax framework for various automotive technologies in India is essential for facilitating product development, which requires substantial time and investment, as stated by Piyush Arora, Managing Director and CEO of Skoda Auto India Volkswagen.
Skoda Auto Volkswagen India Pvt Ltd (SAVWIPL) manages the Indian operations of five brands under the Volkswagen Group – Skoda, Volkswagen, Audi, Porsche, and Lamborghini.
In a dialogue with PTI, Arora emphasized that the government is undertaking actions to boost electric mobility from both demand creation and tax regulation aspects.
“We believe that having a long-term outlook on tax structures for different technologies would significantly benefit the industry since product development processes are lengthy and involve significant investment. A prolonged perspective on duties would be advantageous,” he pointed out.
He was addressing a question regarding the industry’s expectations from the forthcoming Union Budget.
Arora described the Indian market as crucial for strategy, stating that the automaker is deeply engaged in exploring growth prospects.
He noted that the group will evaluate diverse strategies, including partnerships with local entities, to meet a wide range of customer needs.
“India is a strategic market for us, and we are constantly on the lookout for various opportunities, just like in other parts of the world. Collaborating with a partner who shares resources or finding innovative ways to bring more products to market is crucial,” Arora explained.
He further added: “Our emphasis is on addressing this market’s needs from the consumer standpoint, enhancing product offerings in the best possible manner.”
Last year, Klaus Zellmer, Chairman of the Board of Management at Skoda Auto, indicated that the group intends to collaborate with an Indian partner to expand its footprint in the country.
Multiple media reports have associated the company with Indian firms like Mahindra and JSW, although these claims remain unverified.
“With over two and a half decades of presence in India, we have established a comprehensive ecosystem here. Significant investments have been made to introduce innovative products that meet customer needs. Should there be opportunities that create a mutually beneficial scenario, I am confident all partnerships will thrive,” Arora remarked.
He highlighted the group’s intention to enter the electric vehicle segment as well, with market penetration anticipated to reach 15-25 percent by the decade’s end.
According to Arora, the upcoming compact SUV Kylaq will significantly expand customer outreach and consequently enhance market share.
“Approximately 30 percent of the 4 million plus cars sold in India fall within this segment. Thus, we are striving to introduce European technology to Indian customers while simultaneously boosting our market presence,” he stated.
Previously, the brand only catered to 30-40 percent of the passenger vehicle market in India, limiting its market share, Arora mentioned.
“Kylaq presents us with an opportunity to extend our reach to nearly 60 percent of the addressable market. From this perspective, we are certainly aiming for greater market share,” he remarked.
When inquiring about exports, Arora stated that the group is pursuing additional opportunities.
“This year, we will also initiate the export of parts and car component kits to Vietnam. We have a partner in Vietnam who will assemble and produce the Kushaq and Slavia models. This marks a new business avenue for us,” he noted.
The company has established a new parts center at its Pune facility to support this initiative, he added. (PTI)
