Will Skoda Auto Volkswagen India’s 1 billion Rupee bet on India 3.0 pay off?
JUNE 2025
By Akhilesh Tilotia
Skoda Auto Volkswagen India (SAVWIPL) has received the green light from its parent company for an additional 100 billion rupees investment under its India 3.0 roadmap. The plan aims to sharpen focus on premium SUVs and roll out a new line of electric models, leveraging a locally adapted electric vehicle (EV) platform.
This pivot aligns well with evolving consumer preferences. According to Society for Indian Automobile Manufacturer (SIAM) data, utility vehicles, including SUV’s, made up almost 64% of total passenger vehicle sales over the past year.
Yet, the challenge is clear. Vahan data reveals that overall registrations for SAVWIPL more than tripled between FY2021 and FY2023, rising from about 22,400 to nearly 87,000 units. But this growth plateaued in FY2024 and slipped to slightly below 84,000 units in FY2025, below FY2023 levels.
Despite industry momentum on electrification, pure petrol models still dominate, comprising over 94% of total registrations. While hybrids and ethanol-blended fuels have gradually chipped away at this share, the company has yet to launch a fully electric model in India. Meanwhile, the four-wheeler EV market is highly consolidated. Tata Motors, MG Motor India, and Mahindra & Mahindra account for over 90% of all EV registrations between FY2021 and FY2025, leaving limited room for late movers.
In response, SAVWIPL is exploring a local manufacturing and technology partner to reduce costs and improve localisation. Can India 3.0, armed with fresh capital and a localised EV platform, help SAVWIPL carve out meaningful share in segments dominated by agile rivals?
At Thurro, we track the details, from fuel mix shifts to granular registration trends, allowing for more sophisticated analysis of market trends.
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