Skoda Auto India is discussing the rollout of five new Completely Built Unit (CBU) models—Superb, Octavia RS, Elroq, Enyaq, and Kodiaq, a high-risk move into the premium segment of the Indian market and an attempt to build brand value and prestige while treating enthusiasts.
What’s Special About CBUs?
CBUs come with a steep price tag due to import duties of 100% for vehicles. But they allow brands to skip India’s bureaucratic production timelines and infrastructure limitations. They also usually come with better quality materials and better fit & finish. It’s a move that plays well for niche products, but it’s not without risk. The pricing makes it clear: ₹50 lakh for the new Superb, ₹45 lakh for the Octavia RS, ₹50 lakh for the Elroq, and a premium ₹65 lakh for the Enyaq. These numbers place Skoda closer to luxury German rivals than Japanese workhorses, and frankly rob Skoda of the value-for-money tag it carries in Europe.
What Cars Are Coming Back?
The Skoda Superb might return as a feature-loaded, comfortable sedan with a 261 bhp turbo-petrol engine, plush interiors, and futuristic features like ChatGPT-powered infotainment. It’s luxurious but might be priced perilously close to entry-level Mercedes, BMW & Audi sedans such as the A4, C-Class & 3 Series.
The Octavia RS will return to stoke the flames of performance purists. It brings 265 BHP, 370 Nm, quad exhausts, and a driving experience tailored for enthusiasts. We expect this car to sell like hotcakes and become a collector’s item similar to all previous generations launched in India.
The Skoda Elroq, Skoda’s new electric SUV, could land with a 500 km range and sustainable design. At an expected price of ₹50 lakh, it enters a segment that’s still warming up. Charging infrastructure remains a bottleneck outside major metros. Cars from luxury brands such as the BMW iX1 could give it trouble.
The Skoda Enyaq, their flagship EV, brings the full kit—dual motors, 520 km range, Level 2 ADAS, AR display. But at an estimated Rs. 65 lakh, it’s entering a segment dominated by badge-heavy alternatives from Lexus, Audi, Volvo, Land Rover, BMW & Mercedes.
The Kodiaq straddles both worlds. Offered as a CKD for the petrol trims, the diesel versions shift to CBU. This hybrid strategy gives Skoda flexibility while testing the market’s appetite for diesel variants.
Why Not Localise?
The gamble here isn’t just about pricing. Global supply chain disruptions, such as the Red Sea shipping crisis and chip shortages, threaten delivery schedules. Add to that India’s unpredictable regulatory climate and future hikes in import duties, and Skoda’s margins could take a hit. Our 100% tariffs on Completely Built Units do not provide manufacturers with any ability to price their products well, as each of the products we’ve just discussed would be offered at a price close to double that of other markets.
What If These Models Do Well?
Skoda may pivot. CKD versions of the Octavia and Kodiaq could follow, shaving 15–20% off prices and broadening appeal. Partnering with EV infrastructure providers and exploring shared services might help lower operational costs. These CBU launches are a litmus test. These five models are designed to stir the segment and enhance Skoda’s brand value and prestige, but they come with challenges in pricing, positioning, and infrastructure. Whether this plays out as a masterstroke or a misfire will depend on how India’s luxury buyers respond. Either way, Skoda is no longer playing it safe.
