Differential taxation is a stumbling block in making India an export hub

SKODA AUTO’S NEW mid-size SUV, Kushaq, made an international debut in India on March 18. Kushaq means king in Sanskrit. Volkswagen AG, Skoda’s parent company, is the world’s second-largest carmaker, but anything but a king in India. The group’s market share is below 2 per cent, despite selling cars in India for two decades. To recharge Indian operations, Volkswagen unveiled the India 2.0 project in 2018, with plans to bring in a brand-new product portfolio built on the localised MQBA0-IN platform. The group hopes to sell one lakh cars a year by 2025 in India and Kushaq is the first product under this project.

- NACHIKET KELKAR

Excerpts from an interview with Gurpratap Boparai, managing director of Skoda Auto Volkswagen India:

Q/ Volkswagen announced the India 2.0 strategy two years ago. How has it panned out?

A/ We kept the India 2.0 project on track despite the disruptions caused by Covid-19. Kushaq has come out on time, as will the next one (Volkswagen Taigun) and the two that will follow later. So, within the next 10-12 months, we will have four products under the India 2.0 plan. Of course, the other premium products will continue side by side and new products will come there also. But, under the 2.0, which is addressing the mass segment, four cars (two SUVs and two sedans) will come out between the two brands in the next 12 months.

Q/ How much is riding on Kushaq to gain the much-needed momentum in India?

A/ We are talking about a 5 per cent market share in India by 2025 and Kushaq will be a big step towards achieving it. This will contribute a lot towards that target. A lot rides for us on this car.

Q/ Are the Kushaq and the other upcoming products going to be India specific?

A/ We will be exporting. Between Skoda and Volkswagen, there will be 30-odd countries where we will be exporting these cars to. Not Europe, but there will be more mature markets than just emerging markets.