Skoda Auto completes 25 years in India
30 Jan 2025, 05:58 PM
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- Škoda was the first Volkswagen Group brand active in India, laying the foundation stone for its first plant in Chhatrapati Sambhajinagar in January 2000
- Since 2018, Škoda Auto has been spearheading all Group activities in the region
- The current model line-up includes three modern vehicles developed in India for India, including the recently presented compact SUV Kylaq
- Strategically important Škoda Kylaq will contribute to the brands annual sales target of 100,000 vehicles in India by 2026.
Škoda Auto has completed 25 years in India, the automaker entered the country’s market in January 2000 and set up its manufacturing plant in Chhatrapati Sambhajinagar.
Škoda Auto’s journey in India began with the first-generation Octavia, assembled in rented facilities, followed by the introduction of models like the Fabia, Rapid, Superb, and Kodiaq. A significant milestone came in 2018 when Škoda was tasked with leading all Volkswagen Group activities in India and developing the MQB-A0-IN platform specifically for the market. This led to the production of the Kushaq in 2021 and the Slavia sedan the following year, both manufactured in Pune. The latest addition, the Kylaq SUV, entered the popular sub-4-metre segment, receiving 10,000 orders within 10 days of its launch.
India has become a cornerstone of Škoda’s global strategy, serving as a production and export hub for the ASEAN region, Middle East, Australia, and New Zealand. Škoda leads Volkswagen Group activities in the region and has developed India-specific models like the Kushaq, Slavia, and Kylaq, based on the MQB A0-IN platform.
Škoda’s vehicles have earned strong customer interest and numerous awards, including the Škoda Slavia being named India’s Sedan of the Year 2022 and Car of the Year 2023. The company has also invested in India, with plants in Chhatrapati Sambhajinagar and Pune, and a technology center. In 2023, Škoda opened a logistics facility for exporting components to Vietnam.
Skoda is looking to turn profitable in India this year as it expects sales to double with its foraying into the high volume sub-compact SUV segment with its new offering Kylaq, according to a top company executive. Bullish on its growth aspects, the automaker expects the Indian market to break into its top five markets globally with enhanced sales volume growth.
“We have built on 25 years of experience in India to make this thriving market the cornerstone of our international growth strategy. With its tremendous talent pool, growing consumer demand, and access to other markets, India is becoming our second pillar outside Europe and helping leverage further sales potential in ASEAN, the Middle East, and the Indo-Pacific region. Škoda has been a notable brand in India since we entered the market with the Octavia in 2001. We now produce in two plants. We have launched three all-new models specifically for India, achieving localization of up to 95 per cent: the Škoda Kushaq, Slavia, and just recently the Kylaq compact SUV, which complement the Octavia and Superb we also sell through a growing dealer network. In the last two years, we have increased customer touchpoints across the country by 35%. India also contributes to the global sustainability goals of Škoda Auto. One plant already runs entirely on green energy, while the plant in Pune expanded its photovoltaic system to deliver up to 30% of its electricity needs. I want to thank all our Indian colleagues for helping power the next stage of our growth, and especially our customers for their trust in our products. With this passion, we can achieve even greater things in the next 25 years!”
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Klaus Zellmer, CEO of Škoda Auto
Piyush Arora, MD & CEO of Škoda Auto Volkswagen India: “Škoda was the first brand to establish Volkswagen Group’s presence in India, setting up its first plant in Chhatrapati Sambhajinagar back in January 2000. As Škoda celebrates 25 years in the country, the Group’s focus on the Indian market continues to strengthen. With evolving consumer preferences, we are introducing products that combine the Group’s global expertise with a deep understanding of the Indian market. Today, our model lineup features advanced vehicles designed and built specifically for India, including the newly unveiled compact SUV, Škoda Kylaq.
This dynamic market has become the foundation of Skoda’s internationalization strategy, driven by our commitment to innovation, safety, sustainability, and customer-centric solutions. We are dedicated to enhancing our manufacturing capabilities & sales touchpoints and advancing our sustainability initiatives to deliver long-term value to our customers, employees, and communities.”
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