Bucking the trend, Skoda India is making a surprising move by re-introducing diesel engines in the Indian market, starting with the upcoming generation of the Superb sedan. This strategic shift comes despite the increasing focus on electrification in the automotive industry.
Diesel Returns via the CBU Route
Last year, Skoda phased out the Superb in India due to the implementation of stricter BS6 emission norms. However, the company is now making a comeback with the diesel-powered Superb, this time through the CBU (Completely Built-Up) import route.
This means the cars will be fully assembled outside India and then imported, allowing Skoda to bypass the lengthy and expensive process of homologating the engine for local production. We can expect the first batch of these imported Superb sedans to arrive in India later this year.
Shifting Gears: From Diesel Exit to Strategic Re-entry
At the end of the BS4 era, Skoda made a strategic decision to discontinue diesel engines in India, anticipating a global shift towards cleaner, more sustainable fuel options. However, the market dynamics have proven to be more nuanced.
While the push towards electric vehicles is undeniable, the demand for diesel cars, particularly in the SUV segment, remains strong in India. Recognizing this continued consumer preference, Skoda is strategically re-introducing diesel options, albeit limited to flagship sedans like the Superb, to cater to this specific segment. The aim is to expand the brand’s portfolio and cater to a wider range of customer preferences.
Beyond the Superb: A Glimpse into the Future
While the official announcement only confirms the diesel Superb’s return, there are hints that this could be the beginning of a broader diesel re-introduction for Skoda India.
Petr Janeba, Head of International Sales at Skoda Auto, hinted at the possibility of extending the diesel option to other models, particularly SUVs, by the end of 2024. However, the company has not yet officially confirmed these plans.
A Calculated Move: Balancing Market Demand with Sustainability Concerns
Skoda’s decision to re-introduce diesel engines in India is a calculated move aimed at balancing market demand with long-term sustainability goals. While the company acknowledges the importance of transitioning towards cleaner technologies, it also recognizes the need to cater to the existing customer base that still prefers diesel options, especially in specific segments like SUVs.
This move may raise questions about the company’s long-term commitment to electrification, but it also highlights the complex realities of the Indian automotive market where demand for different fuel options still co-exists.
Impact on the Market: Will Other Brands Follow Suit?
Skoda’s decision to re-introduce diesel engines could have a ripple effect on the Indian automotive market. It will be interesting to see if other car manufacturers follow suit and re-evaluate their own diesel strategies in India. This could potentially lead to a renewed focus on cleaner and more efficient diesel engine technologies to meet stricter emission regulations while catering to the existing demand.
Looking Ahead: A Diesel Resurgence or a Temporary blip?
Only time will tell whether Skoda’s diesel re-introduction is a temporary blip or a sign of a broader resurgence for diesel vehicles in India.
It will depend on several factors, including the evolution of government regulations, the future trajectory of fuel prices, and the pace of customer adoption of electric vehicles. Regardless of the outcome, Skoda’s move is sure to spark conversation and debate within the Indian automotive industry.
