Skoda has put the plans to launch Enyaq EV on hold. This comes as the Indian government has reduced the import duties of EVs by a whopping 86%. This has made Skoda reconsider the plans of locally manufacturing the EV in Chattrapati Sambhajinagar in Maharashtra.
The government announced the SPMEPCI scheme (Scheme to Promote Manufacturing Electric Passenger Cars in India) in March 2024. This scheme aims to reduce the import duties on EVs from 110% to just 15%. It will be applicable for EVs which cost above USD 35,000 (Rs. 29.9 Lakh), allowing imports of up to 8000 units per year.
However, it will be allowed on the following conditions:
The brand is waiting for the implementation of the policy, which has reportedly faced delays due to global tariff policies. Skoda has assured that it will release the locally manufactured EV in 2028.
Skoda has also paused the introduction of new petrol and diesel cars in the Indian market because of no clarity on duties with respect to their imports. Currently, they manufacture the Skoda Kodiaq locally. The models which are on hold currently may include the Octavia facelift and Octavia vRS, new-gen Superb in AWD Diesel form.
It remains to be seen how the global tariffs impact the Indian automotive market. The shift towards local manufacturing may soften with respect to EVs.
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