Škoda Auto, the Czech automotive giant, recently revealed its latest compact SUV, the Škoda Kylaq, marking a pivotal moment in its India 2.5 strategy. This announcement represents Škoda’s global strategy, targeting India’s burgeoning car market after exiting Russia and planning a phased withdrawal from China.
Global Vision with Local Precision
Set for a 2025 global debut, the Kylaq enters India’s fiercely competitive compact SUV segment, a sector ripe with opportunity. Constructed on the MQB-A0-IN platform—shared by the successful Kushaq SUV and Slavia sedan—the Kylaq merges Škoda’s European engineering with enhancements tailored specifically for Indian roads. High ground clearance, ample wheel space, and refined DRL light signatures reflect Škoda’s Modern Solid design language, debuting in India through the Kylaq. These features position the SUV to stand out in a saturated market.
India: The New Focus for Škoda
Škoda Auto’s intensified focus on India extends beyond regional strategy, aligning with a broader global agenda. The company, under the Volkswagen Group umbrella, aims to elevate its Indian market share from 2.25% to 4% by 2026 and further to 5% by 2030. Additionally, India serves as a strategic export hub for ASEAN and Middle Eastern markets, underscoring its importance in Škoda’s global plans.
CEO Klaus Zellmer underscored the critical role of India in Škoda’s future, stating, “From a business perspective, it’s not always wise to stand on only one leg. If it gets a little shaky, you want to stand on the second leg, which for us is India… It is the place to be, going forward.” Zellmer’s words emphasize India’s role as a cornerstone in Škoda’s diversified global focus.
Competing Head-to-Head
With over 25% of the Indian passenger vehicle market dominated by the compact SUV segment, Škoda’s entry through the Kylaq directly challenges established players such as Maruti Brezza, Kia Sonet, and Tata Nexon. A pricing strategy ranging between Rs 8 lakh and Rs 15 lakh, coupled with a 75-76% localization rate, positions the Kylaq as a formidable contender in this lucrative segment.
Reinventing Customer Engagement
The ‘Name Your Škoda’ initiative, launched earlier this year, showcased Škoda’s evolving approach to customer engagement. By inviting fans and potential buyers to participate in naming the Kylaq, Škoda generated interest and cultivated a deeper connection with the Indian market. The naming contest winner will receive the first Kylaq when it launches, further strengthening the bond between the brand and its customers.
The Road Ahead
Škoda’s Kylaq represents more than just a new model; it is a bold statement of the company’s redefined strategy in emerging markets. The Kylaq’s success could potentially reshape the compact SUV landscape in India and set a precedent for Škoda’s approach in other markets.
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