Skoda India pauses plans for importing CBU models amidst customs duty uncertainty — Details

Skoda has been mulling to reintroduce diesel cars in India, with plans to launch the Superb diesel, Octavia diesel, and the Kodiaq diesel in the near future. These cars, however, will come via the CBU route, attracting significant import duties. Recent reports suggest that Skoda Auto India has put its plans of launching its global cars in India on hold, for the ones that are to be brought here via the CBU route. Here are more details about this news.

Upcoming Skoda cars in India

The Czech carmaker has a number of models on the cards for India launches, particularly the Skoda Superb, Skoda Octavia, Skoda Octavia vRS, Skoda Kodiaq vRS, Skoda Kodiaq diesel, and the all-electric Skoda Enyaq. The second generation Skoda Kodiaq was launched yesterday, and is locally assembled in India via CKD kits.

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Import plans halted

As per a report by The Economic Times, Skoda India has put its plans of importing its CBU models on hold in anticipation of getting clarity on custom duty. Petr Janeba, Brand Director, Skoda India, has confirmed that the models were ready for launch but have been put on hold due to a potential reduction in custom duties following the signing of a proposed free trade agreement between the EU and India. An agreement between India and the US is also been looked forward to. 

The road ahead for Skoda electric cars in India

Skoda also plans to soon launch the Skoda Enyaq EV in the country, and it might assemble the car locally. It is awaiting the final advanced fuel efficiency guidelines from the India government under the CAFE III norms. The Enyaq was first showcased in India back in 2024 at the inaugural Bharat Mobility Global Expo. 

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New import strategy

As per a report by Autocar Professional, the carmaker is working on a new retail strategy wherein it will only accept bookings for the CBU models quarterly, and import based on actual demand rather than forecasts. This is aimed at avoiding unnecessary stock pileup, which otherwise forces dealers to offer huge discounts to clear inventory. 

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