Skoda Exploring CNG & Flex-Fuel for India

Skoda Auto Volkswagen Group in India is strategically evaluating the introduction of Compressed Natural Gas (CNG) and flex-fuel vehicles. This move is driven by the impending advanced fuel emission regulations that are pushing automakers to diversify their powertrain options. These considerations are running in parallel with the group's ongoing plans to introduce an electric vehicle.

This exploration of new powertrains is part of the group's commitment to introduce close to 19-20 product interventions in India this year. The Corporate Average Fuel Efficiency (CAFE-3) rules, which will take effect in April 2027, mandate a significant reduction in average fuel consumption and fleet-average carbon-dioxide emissions by 2032.

Skoda Auto Volkswagen India, which currently lacks CNG, flex-fuel, or hybrid electric vehicles, is deliberately adopting a multi-technology strategy. This approach aims to mitigate regulatory risks associated with the approaching deadlines, acknowledging the slower-than-anticipated growth in electric vehicle penetration and charging infrastructure.

Despite these regulatory challenges, the group achieved its strongest-ever sales performance in India during the calendar year 2025, selling approximately 117,000 vehicles locally. Looking ahead, the company anticipates continued double-digit volume growth for at least the next six months, with broader strategic planning also influenced by ongoing bilateral trade agreement discussions.