Latest news with #Zellmer
Time of India
a day ago
- Automotive
- Time of India
VW's Skoda posts 12% profit rise in H1 as electric sales grow
Skoda Auto , a Volkswagen unit, increased the share of electric vehicles in its sales mix in the first half of the year and posted a nearly 12 per cent rise in operating profit to 1.3 billion euros ($1.52 billion), it said on Monday. The Czech carmaker's revenue for the first six months rose nearly 12 per cent year on year to 15.1 billion euros. Deliveries were up 14 per cent to 509,400 vehicles in the period. Around 23 per cent of those deliveries were either fully electric or plug-in hybrid models, up from 9.4 per cent in the first half of last year, the company said. Chief Executive Klaus Zellmer said customers had placed more than 120,000 orders for Skoda's all-electric Enyaq and Elroq models by the end of June, highlighting progress in its electrification strategy. European automakers have booked multi-billion-euro losses and issued profit warnings as they struggle to handle competition from China, U.S. import tariffs, and EU regulations aimed at speeding up the EV transition. "Sales relative to the overall market performance, we are doing good," Zellmer told journalists in a video conference. While overall car sales have fallen in Europe this year, sales of electric vehicles - a priority segment for companies like Skoda Auto - have been rising. Zellmer said the company sees big potential with the new Epiq, an electric SUV priced at 25,000 euros that will target entry-level consumers. It plans to launch the Epiq in the first half of 2026. "We put a lot of hope or I would even say ... expectation on that car," he said. "Our current rate of electrified drive train sales ... has to go up." In the European market, Skoda delivered 409,100 vehicles to customers, an increase of nearly 11 per cent that outperformed the overall market and was underpinned by the sales of 72,000 electric vehicles and 21,400 plug-in hybrids, the company said. Skoda also achieved record results in India where it delivered 33,000 vehicles, representing year-on-year growth of 108 per cent, the company said.
Zawya
14-03-2025
- Automotive
- Zawya
VW's Skoda to invest in manufacturing EVs in India despite $1.4bln tax demand overhang
Skoda Auto plans to manufacture electric cars in India and will invest in the country by itself if its search for a local partner fails, the Czech carmaker's CEO said, as its parent Volkswagen Group fights a $1.4 billion tax demand case. VW's local unit Skoda Auto Volkswagen India is embroiled in a legal tussle with the country's tax department over allegations that it misclassified imports of some Audi, VW and Skoda cars to evade higher duties. If the company loses the battle, against what it calls an "impossibly enormous" demand, it will need to fork out $2.8 billion including penalties and interest, which could become a matter of survival, one of VW's lawyers said last month. CEO Klaus Zellmer told the media this week that he was unable to comment on the "ongoing, very critical procedure", but that Skoda is targeting India as it looks to the world's third-largest car market for growth outside Europe. "(It) is still our will and our strategy to form a joint venture to be even stronger in India ... but if there's no right partner we stay single and be still attractive and successful," he told reporters at a post-earnings press conference. Skoda has been leading Volkswagen's India strategy since 2018, but sales have remained low with the Volkswagen and Skoda brands together accounting for just 2% of India's 4 million units a year car market. But with stricter vehicle fuel efficiency standards set to kick in from 2027, all carmakers will have to introduce EVs, and Skoda believes its access to the Volkswagen Group's EV technology might give it an edge. "We can offer very innovative, very cost efficient solutions for battery electric vehicles, and this is our strategy also for India," Zellmer told reporters on the virtual call. Skoda has an agreement with India's Mahindra & Mahindra to supply some EV components. Zellmer did not name Mahindra or any other company in terms of potential collaborators, but said talks were ongoing with partners with "local roots". India, where small cars from Suzuki Motor and Hyundai dominate the roads, has proved a difficult market for Western carmakers. But Skoda, which no longer has a big presence in China and exited Russia, says India is a "major focus" for its business. The company has previously shown interest in a government programme that will offer incentives for local EV manufacturing. It has also signed an initial agreement with the government in India's western Maharashtra state to invest about $1.7 billion to build EVs. Zellmer said it was important for Skoda to get its portfolio right in India, a market he said was a "gateway" for Southeast Asia and the Middle East. "We are really looking for us building on ... one of the biggest potential growth markets globally," he added. (Reporting by Aditi Shah; Additional reporting by Victoria Waldersee in Berlin; Editing by Kate Mayberry)
Reuters
14-03-2025
- Automotive
- Reuters
VW's Skoda to invest in manufacturing EVs in India despite $1.4 bln tax demand overhang
Summary Companies Skoda to adapt EV technology from China for India market Co will stay "single" and invest in India if no partner found VW faces $1.4 bln tax demand over misclassification of imports NEW DELHI, March 14 (Reuters) - Skoda Auto plans to manufacture electric cars in India and will invest in the country by itself if its search for a local partner fails, the Czech carmaker's CEO said, as its parent Volkswagen Group fights a $1.4 billion tax demand case. VW's local unit Skoda Auto Volkswagen India is embroiled in a legal tussle with the country's tax department over allegations that it misclassified imports of some Audi, VW and Skoda cars to evade higher duties. If the company loses the battle, against what it calls an "impossibly enormous" demand, it will need to fork out $2.8 billion including penalties and interest, which could become a matter of survival, one of VW's lawyers said last month. CEO Klaus Zellmer told the media this week that he was unable to comment on the "ongoing, very critical procedure", but that Skoda is targeting India as it looks to the world's third-largest car market for growth outside Europe. "(It) is still our will and our strategy to form a joint venture to be even stronger in India ... but if there's no right partner we stay single and be still attractive and successful," he told reporters at a post-earnings press conference. Skoda has been leading Volkswagen's India strategy since 2018, but sales have remained low with the Volkswagen and Skoda brands together accounting for just 2% of India's 4 million units a year car market. But with stricter vehicle fuel efficiency standards set to kick in from 2027, all carmakers will have to introduce EVs, and Skoda believes its access to the Volkswagen Group's EV technology might give it an edge. "We can offer very innovative, very cost efficient solutions for battery electric vehicles, and this is our strategy also for India," Zellmer told reporters on the virtual call. Skoda has an agreement with India's Mahindra & Mahindra ( opens new tab to supply some EV components. Zellmer did not name Mahindra or any other company in terms of potential collaborators, but said talks were ongoing with partners with "local roots". India, where small cars from Suzuki Motor (7269.T), opens new tab and Hyundai ( opens new tab, ( opens new tab dominate the roads, has proved a difficult market for Western carmakers. But Skoda, which no longer has a big presence in China and exited Russia, says India is a "major focus" for its business. The company has previously shown interest in a government programme that will offer incentives for local EV manufacturing. It has also signed an initial agreement with the government in India's western Maharashtra state to invest about $1.7 billion to build EVs. Zellmer said it was important for Skoda to get its portfolio right in India, a market he said was a "gateway" for Southeast Asia and the Middle East. "We are really looking for us building on ... one of the biggest potential growth markets globally," he added.
