Skoda India is gearing up to revamp its strategy for the Kushaq compact SUV by introducing more affordable trims powered by the potent 1.5-litre TSI turbo-petrol engine. This move comes in response to the launch of its smaller sibling, the Kylaq, which has created an overlap in pricing between the two models.
The Kushaq, which shares its platform, equipment, and 1.0-litre TSI engine with the Kylaq, is now being repositioned to stay relevant in the midsize SUV segment.
Kylaq’s Impact on Kushaq
The recently launched Skoda Kylaq is priced between ₹7.89 lakh and ₹14.40 lakh (ex-showroom, India). While the Kylaq targets a younger audience with its competitive pricing and compact dimensions, it inadvertently steps into the Kushaq’s territory. Skoda acknowledges that this overlap could lead to cannibalisation, where Kylaq’s affordability might sway potential Kushaq buyers.
To counter this, Skoda’s India brand director, Petr Janeba, shared plans to differentiate the Kushaq by offering a stronger value proposition. “We aim to create parity between these two products, ensuring minimal cannibalisation,” said Janeba.
Introducing Affordable 1.5 TSI Variants
Currently, 85% of Kushaq sales come from the 1.0-litre variants. However, with the Kylaq now competing in that segment, Skoda intends to shift focus toward the more powerful 1.5-litre TSI models. The company plans to introduce entry-level trims of the 1.5 TSI, making the larger engine more accessible to buyers.
“We anticipate that with this move, the 1.0-litre Kushaq variants will account for around 65-70% of total sales, compared to the current 85%,” added Janeba. This strategy not only caters to customers seeking a more premium experience but also provides the Kushaq with a unique positioning that sets it apart from the Kylaq.
Future Plans for the Kushaq
To further differentiate the Kushaq, Skoda is also planning a mid-lifecycle facelift in 2025. This update is expected to include cosmetic tweaks, additional features, and enhancements to the warranty structure, ensuring the model remains competitive in the increasingly crowded midsize SUV market.
While the Kylaq boosts Skoda’s overall volumes, the Kushaq’s repositioning aims to maintain its appeal in the midsize SUV space. By targeting a more diverse audience with new trims and features, Skoda hopes to keep the Kushaq relevant and reduce internal competition between its two popular SUVs.
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