Skoda Auto India is launching the Kylaq, a compact SUV designed to challenge established players in India’s competitive automotive market. The vehicle represents a strategic pivot for the company, aiming to transition from a premium niche brand to a volume manufacturer.
The Kylaq enters a segment dominated by brands like Tata Nexon, Maruti Suzuki Brezza, Hyundai Venue, and Kia Sonet. Priced at ₹7.89 lakh, the SUV features a 1.0 TSI turbocharged engine and over 25 safety features. With 90% localization, Skoda targets an 8% market share, translating to approximately 75,000-85,000 annual units.
In 2024, Skoda delivered 36,000 vehicles in India, a 26.3% decline from the previous year. The Kylaq is central to the company’s strategy to reverse this trend and potentially return India to its second-largest market within two years. The company plans to expand its dealer network to 350 touchpoints by mid-2025, targeting Tier 2 and Tier 3 cities.
Peter Janeba, Brand Director of Skoda Auto India, described the Kylaq as a breakthrough that allows entry into the largest market segment. The company aims to increase its overall market share to 2.5%-3% by 2025, with ambitions to become a household name across urban and rural markets.
Beyond domestic sales, Skoda is exploring export opportunities for the Kylaq in markets including Australia, New Zealand, Southeast Asia, and Africa. The company is also preparing for future mobility, developing a hybrid successor to the Kushaq and exploring locally manufactured electric vehicles.
This approach reflects Skoda’s commitment to adapting to evolving consumer preferences and technological advancements in the Indian automotive landscape, positioning the Kylaq as a cornerstone of its growth strategy in one of the world’s largest automotive markets.