The proposed India–European Union Free Trade Agreement is expected to reshape how European carmakers operate in the Indian market, and Skoda Auto India could
be one of the early beneficiaries. The deal is not just about tariff cuts. It is about smoother technology access, stronger localisation and a more efficient supply ecosystem that supports long-term growth. The India–EU FTA can reduce friction between Europe and India when it comes to sourcing, technology movement and component integration. For a brand like Skoda, which carries deep European engineering DNA, the agreement could make it easier to bring advanced systems into India while simultaneously pushing higher levels of local manufacturing. Localisation is no longer limited to body panels or interiors. Modern vehicles, especially electric and connected cars, depend heavily on electrical architecture, software integration and safety electronics. That is where the broader industrial ecosystem, including wires and cables, becomes critical for automakers planning scale in India. The video discussion highlighted how India’s wires and cables segment is moving into a faster growth phase, directly supporting sectors such as EVs, defence, railways and automobile manufacturing. Historically, the segment used to grow at around one and a half times the GDP. That pace is now picking up. In FY25, India’s wires and cables market was valued at about Rs 90000 crore. It is expected to expand to nearly Rs 1.5 lakh crore by FY29. This points to a 5-year CAGR of roughly 13 percent, meaning the industry is now growing at almost twice the pace of GDP. For Skoda Auto India, this expansion translates into better depth of suppliers, improved quality consistency and cost efficiency as localisation increases. Demand for wires and cables comes from power generation, transmission and distribution, renewable energy projects, data centres, real estate, infrastructure, railways and metro networks, defence manufacturing, EVs, industrial production and semiconductors. These are also the same areas shaping India’s mobility and manufacturing story. Typically, wires and cables account for around 3 per cent to 3.5 per cent of total project capex, making them a foundational input across industrial, commercial and residential development. Easier access to European technology combined with India’s fast-growing manufacturing base allows Skoda to align global engineering standards with local execution. Advanced electrical systems, EV platforms and safety technologies can be introduced faster, while Indian suppliers scale up to meet those requirements. The sector also offers healthy visibility over the next 5 years, with mid-teens growth expected to continue. While players such as Ultratech Cement, Adani Enterprises and Crompton Greaves have announced entry into the wires and cables business, their impact is expected to remain limited. Setting up manufacturing facilities involves approval and capex cycles of close to 3 years. Products require heavy customisation, and incumbent players already have long-standing relationships with large clients. New capacity additions are also expected to remain below 5 percent of total industry size, avoiding sudden competitive pressure. Exports add another dimension. India’s wires and cables exports rose from about Rs 4900 crore in FY20 to nearly Rs 14500 crore in FY25, recording a CAGR of around 24 per cent. Yet India’s global market share is still only about 0.6 per cent, leaving large room for expansion. The China-plus-one strategy, renewable investments and grid modernisation in the Middle East, Europe and Australia are likely to drive overseas demand. For Skoda Auto India, the India–EU FTA could help connect Indian manufacturing more closely with European supply chains. As exports and localisation improve, India can emerge not just as a consumer market for Skoda, but also as a production and sourcing base aligned with European standards. Commodity price volatility, particularly in copper and aluminium, is not seen as a major concern. Prices are revised roughly every 15 days and passed on quickly to customers, keeping margins largely insulated. This stability helps both suppliers and OEMs plan capacity and pricing with more confidence.
Taken together, the India–EU FTA, a strengthening localisation push and a rapidly expanding industrial ecosystem create a supportive backdrop for Skoda Auto India’s next growth phase.
