Skoda Auto India Targets 8,000 Monthly Sales for the Kylaq: A New Era for the Brand
Skoda Aims for 3% Market Share and Increased Profitability with the Kylaq SUV
Having established a strong presence in the Indian automobile market for 25 years, Skoda Auto India is now focused on increasing its sales volumes, capturing a 3% market share, and boosting profitability with its locally developed compact SUV, the Kylaq. The company has traditionally sold between 2,500 and 3,500 cars per month, including models like the Kushaq, Kodiaq, Slavia, and Superb. However, with the launch of the Kylaq, Skoda plans to take its numbers to the next level and make a significant mark in the competitive compact SUV segment.
The Czech carmaker, known for models like the Kushaq, Kodiaq, Slavia, and Superb, has sold around 2,500 to 3,500 cars monthly. However, with the launch of the Kylaq, Skoda plans to significantly ramp up its numbers and create a new milestone in the Indian market.
Kylaq’s Ambitious Sales Targets
Skoda has set an ambitious target for the Kylaq SUV, aiming for monthly sales of 8,000 units. Bookings for the compact SUV opened on Monday, with deliveries set to begin in January. The Kylaq starts at a competitive price of Rs. 7.89 lakh (ex-showroom) and boasts an impressive 96% localisation, making it more accessible to a broader audience.
Petr Janeba, Brand Director of Skoda Auto India, shared that the company already receives significant interest for the Kylaq through various channels. “We actually get more than 160,000 people interested through different channels,” said Janeba, indicating strong demand. With this momentum, Skoda expects the SUV to be a key driver in the brand’s growth in India.
Expansion Plans: Focus on Tier-II and Tier-III Cities
Skoda Auto India has the capacity to produce 100,000 Kylaqs annually at its local plant. However, the company anticipates annual sales of around 80,000 units. The goal is to achieve this number by 2026, though Skoda remains hopeful that it could reach this target even sooner, in 2025. This growth will be supported by the company’s planned expansion into Tier-II and Tier-III cities, where Skoda will add an additional 100 touchpoints to its existing network.
Janeba highlighted that reaching 80,000 units next year, combined with the sales of other Skoda models, could triple the company’s overall volume in India. This growth is pivotal as Skoda aims for a 3% market share and is positioning the Kylaq to usher in a new era for the brand in the country.
Competitive Maintenance Costs and Profitability
Skoda has also addressed a key concern for Indian consumers: the maintenance cost. The company is offering a highly competitive 24 paise per km maintenance cost for the Kylaq over a 5-year period, which includes three years of free service. This is significantly lower than the competition, where the maintenance cost per km can be as high as 45-50 paise.
Janeba believes that the Kylaq will not only boost Skoda’s sales volume but also help improve profitability. “The Kylaq is a profitable car, and it will help improve the scale, thereby supporting the profitability of all other models,” he stated. Skoda’s focus is on reinvesting any additional profit into new product development, rather than aiming for huge profits in the short term.
India-First Strategy and Future Expansion
Skoda has made it clear that it is adopting an India-first approach for the Kylaq. The right-hand drive version of the Kylaq will not be exported until the domestic demand is fully met, with exports expected to begin no earlier than September 2025. This decision underscores the company’s commitment to the Indian market and its focus on meeting local demand first.
Looking ahead, Skoda is planning further localisation of its cars to enhance production efficiency and cater to Indian consumers’ needs. The company is also eyeing electric vehicle (EV) assembly in India by 2027, aligning with the Indian government’s push for EV adoption.
Capacity and Future Models
Skoda has an annual production capacity of 255,000 units, with potential to increase this to 270,000 units. However, the company will need to expand its capacity further, especially with the future introduction of electric vehicles. The paint shop, in particular, could become a bottleneck as production increases.
Skoda’s future models include a seven-seater successor to the Kushaq, a locally built Kodiaq, and a series of completely built units (CBUs). Skoda is keen to provide a premium experience for Indian customers, expecting the same level of quality from their vehicles as they would from European luxury brands like Mercedes or BMW.
Conclusion: A New Era for Skoda in India
With the launch of the Kylaq, Skoda Auto India is setting its sights on an exciting future. The combination of competitive pricing, high localisation, and low maintenance costs makes the Kylaq an attractive option for Indian consumers. As the company moves towards a volume-driven strategy, the Kylaq is poised to be a game-changer in Skoda’s India operations, helping the brand reach its goal of 8,000 units per month and a 3% market share by 2026. With strategic investments in the dealer network and new product development, Skoda is preparing to strengthen its position in the Indian market for years to come.