BMW and Skoda India Strategy

Yesterday’s issue of India Rising brought back my Mercedes times.


When I started at Daimler in 2014, the automotive sector was new to me. So I learned a lot, and a lot of abbreviations.

When I wrote my Rise of the Week about BMW Group and Škoda Auto ’s strategy in India and the impact of the EU-India FTA, it came in surprisingly handy.

CBU (Completely Built Unit) and CKD (Completely Knocked Down = cars getting reassembled in target market to profit from lower tariffs). The strategies behind. It felt like things were coming together.

But here’s the thing: German carmakers are approaching India like a premium niche. East Asian and domestic players are approaching it like a volume market that rewards speed and local presence. The FTA will lower tariffs on CBU imports, which sounds like good news for German OEMs. But it could also become an excuse to delay deeper commitments in the third largest automotive market.

I think German carmakers risk neglecting a market that requires presence and fast paced adoption.

The risk: the FTA makes the comfortable play look rational, while competitors build the manufacturing base that wins long-term.

Find the full article of India Rising here —> Article in India Rising issue 55.


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