Skoda Auto’s CEO Klaus Zellmer announced that India will become a central focus for the company, following setbacks in Russia and China. The Volkswagen group’s Czech brand plans to launch its first sub-4-metre SUV early next year.
“India is our second leg to stand on after Europe,” Zellmer said. “We need to diversify, and India is crucial for our future.” After exiting Russia due to the Ukraine conflict and facing stiff competition in China, Skoda is betting big on the Indian market. Last year was Skoda’s best in terms of earnings, and now the company aims to capture a 4% market share in India by 2026.
The compact SUV market in India is rapidly growing, making up over 25% of the market by the end of 2023. Skoda’s upcoming model will compete with the Maruti Brezza, Kia Sonet, and Tata Nexon, priced between Rs 8 lakh to Rs 15 lakh.
“We want to increase our market share significantly,” Zellmer said. “We believe our new compact SUV will meet market expectations in technology, fit, and finish.” Skoda has already invested one billion euros in India from 2019 to 2021. The upcoming compact SUV will be a smaller version of the Kushaq, which was part of the Volkswagen Group’s India 2.0 plan.
“We’ve sold over 100,000 cars in two years,” Zellmer added. “This year is crucial as we ramp up production and increase our dealer network from 250 to 300 by year-end.” Skoda is also using India as a hub for the ASEAN region, with plans to start producing the Kushaq in Vietnam by the end of the year.
“We’re exporting cars to Saudi Arabia and beyond,” Zellmer said. “India offers the most growth potential, and we are committed to understanding and serving our customers here.” Despite the competitive market, Zellmer is confident that Skoda’s new compact SUV will not suffer the same fate as the discontinued Fabia hatchback. “We’re learning and adapting to ensure success in India,” Zellmer concluded.
