Global trade tensions and unclear EV policy rollout force the Czech carmaker to reassess its CBU and CKD strategy for India.
17 Apr 2025 | 2083 Views | By Ketan Thakkar & Prerna Lidhoo
Skoda Auto has deferred the India launch of its Enyaq electric SUV, initially planned for 2025, citing uncertainty over the rollout of the new EV policy and ongoing global tariff discussions.
The Czech carmaker, which was considering assembling the Enyaq at its Aurangabad facility, may instead opt for importing ...
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Skoda Auto has deferred the India launch of its Enyaq electric SUV, initially planned for 2025, citing uncertainty over the rollout of the new EV policy and ongoing global tariff discussions.
The Czech carmaker, which was considering assembling the Enyaq at its Aurangabad facility, may instead opt for importing the vehicle as a completely built unit (CBU) — if the Indian government permits EV imports at a reduced duty structure.
We are committed to EVs. Our locally manufactured EV will come by 2027–28. Still, we are reviewing our CBU and CKD plans amid uncertainty over the EV policy and the current tariff discussion,” said Petr Janeba, Brand Director, Skoda Auto India, in an interaction with Autocar Professional.
If Skoda does plan to proceed with CBUs, multiple EVs are potentially possible, as the company also explored the Enyaq Coupe and Elroq EV for the Indian market.
India’s much-anticipated Scheme to Promote Manufacturing of Electric Passenger Cars in India (SMEC), announced in March 2024, was designed to attract global EV makers like Tesla. The policy reduces import duties from 110% to 15% for premium EVs priced above $35,000, allowing imports of up to 8,000 units per manufacturer per year. In return, automakers must invest a minimum of Rs. 4,150 crore (approximately $500 million), establish local manufacturing within three years, and meet 25% domestic value addition (DVA) by the third year, rising to 50% by the fifth year.
However, implementation of the policy remains in flux amid shifting global dynamics. Since taking office, U.S. President Donald Trump has intensified calls for reciprocal tariffs, and in a recent interview, expressed displeasure over Elon Musk’s potential India investment, signaling that Tesla may prioritize CBU imports over local production in the near term.
This has sparked renewed debate over India's trade stance. The United States and the European Union have both urged India to lower its steep automotive import duties, pressure that could push the government to pause or dilute the EV policy. This could create further uncertainty for automakers like Skoda evaluating entry strategies for global EV products.