Betting Big

Following the success of the Kodiaq and Kushaq SUVs in the Indian market, Skoda Auto India introduced the Slavia, a premium mid-size sedan, which has also garnered significant success among customers. The company’s sales chart has been on a steady rise every year. To maintain this momentum, Skoda’s global team recently convened in Mumbai to strategise for India, focusing on new products, branding, marketing, and network expansion under a new era as part of an India-centric branding strategy. Additionally, the company announced the launch of a new compact SUV and initiated a naming contest for this new model. Skoda is placing a significant bet on India and its growth potential, with its next target set to achieve 100,000 annual volumes by 2026. Looking back, Skoda’s best-selling sedans – the Octavia, the Rapid, and the Superb – dominated the sedan segment for many years.

“The Skoda brand has made significant strides globally, and our journey in India is progressing well, with sales witnessing an 18.5 per cent growth in 2023 compared to 2022, thanks to locally developed and produced models like the Kushaq and Slavia,” stated Martin Jahn, Member of the Board of Management, Sales & Marketing, Skoda Auto. “India has become the third-largest car market globally and is among the top five markets for Skoda Auto, making it a key market for our growth. We achieved our highest ever sales in India, crossing the 100,000 sales mark. Additionally, we see India as an export hub for the ASEAN region, with CKD production of India made models starting in our newly built factory in Vietnam. Our India strategy is progressing well, and we are now entering a new era focused on top-line EVs and compacts. We are also expanding our SUV portfolio for India, reflecting our enthusiasm for the new era we are entering in India.”

Larger customer base

In global markets, Skoda sold more than 866,000 cars in 2023, elevating its global ranking to 7th from 10th. The company is also testing an electric car for India. India is a key contributor to Skoda’s global growth and is poised to be the most promising growth market in the coming years, with exports also picking up. Skoda aims to achieve a market hare of around 5 per cent by 2030. To achieve this, a new compact SUV will be launched in the first half of 2025, expanding its SUV line-up alongside the Kodiaq and Kushaq, aimed at capturing a larger customer base and sales numbers. Currently, compact SUVs account for more than 50 per cent of overall new car sales in India.

Piyush Arora, MD and CEO of Skoda Auto Volkswagen India (SAVWIPL), commented: “After the success of the ushaq and Slavia, we are expanding our reach with the upcoming launch of an all-new compact SUV, targeting the largest segment in India. Our R&D expertise in India has enabled us to incorporate highly localised parts and components for our entire range. With the new compact SUV, we are furthering this strategy by Systematically developing our local supplier base to provide parts and components of global standards and quality at competitive prices.”

“Skoda has been instrumental in fuelling the growth of the Group in India, not only in terms of sales volumes but also in terms of our network reach and evolution across the value chain,” explained Jan Bures, Member of the Board, Sales, Marketing, and Digital, SAVWIPL. Petr Janeba, Brand Director, Skoda Auto India, added: “I am extremely pleased to announce that in a year from now, Skoda Auto will debut an all-new car — a compact SUV for the Indian market. With this launch, we will enhance our workforce on all fronts, with an innovative approach and pioneering formats to engage with our new and existing customers.”

The made-in-India models built on the MQB-A0-IN platform remain key contributors in India. Skoda’s brands are well-known globally for their products, and with its new strategy in place, the carmaker is poised to play a long innings in India.

S M BOOTHEM

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