Skoda Hits the Brakes: Imported Car Dreams Parked for Now

In a major development, Skoda Auto India has put on hold its proposal for introducing imported petrol, diesel, and electric cars in the country. The decision follows continued uncertainty regarding customs duties, with the company leadership declaring that there needs to be clarity on the tariff policies of the government before going ahead. This hiatus impacts the highly anticipated arrival of high-end models such as the Superb, Octavia, Octavia RS, and the new Kodiaq, along with the Enyaq electric SUV, all of which were to come into India via the completely built unit (CBU) route.

Petr Janeba, Brand Director at Skoda Auto India, said the company is also postponing local production of electric vehicles until the government completes advanced fuel efficiency regulations under the new CAFE 3 norms. The company is hopeful of bringing back diesel models to its premium portfolio once the tariff scenario becomes clearer.

Skoda is closely monitoring ongoing talks for a free trade agreement between India and the European Union with the hope that there will be a cut in the high import tariffs—already up to 110% on completely built vehicles. A settlement should be forthcoming within the next three months and could lead the way for resumed plans and even EV launches towards the end of the year.

Source: The Economic Times