Skoda plans to launch budget EV in India

Skoda has officially announced to launch its budget-friendly EV anytime soon. The all-new vehicle is expected to come in Kushaq size which will be manufactured in the company’s Aurangabad factory.

According to a report by Carwale, the automaker is waiting for the CAFE 3 norms and the central government’s clarification on EV taxation policies. The company has underlined the importance of deep localisation to offer a budget EV in the competitive market of India. Moreover, the current market size also needs to increase, the report added.

While this locally manufactured EV will arrive in India after 2027, the company’s initial foray into the EV category will be with the Enyaq and Elroq SUVs. The latter was just introduced, while the former, which will be available in India, will be updated in March 2025. Both cars will be delivered via the CBU route at launch, but if there is sufficient demand, they may be produced locally.

The reason for the upcoming EV to be Kushaq-size is that at the time of the launch, the SUV will be a brand-new car with two-row and three-row choices As a result, it is anticipated that Skoda will design the EV more like the new car than the present one. In addition to these reasons, the market is expected to move further towards bigger cars with new competition among Toyota, Mahindra, Maruti Suzuki, Honda, Kia and Hyundai.