Skoda Auto India has set its sights on achieving a significant increase in domestic sales in 2025, fueled by the recent launch of its new Skoda Kylaq sub-compact SUV.
Positioned in the highly competitive sub-compact SUV segment, the Kylaq is expected to rival popular models like the Tata Nexon, Kia Sonet, Maruti Suzuki Brezza, Hyundai Venue, and Mahindra XUV300.
With the Kylaq, Skoda is marking its entry into a new market segment in India, offering a more affordable option while maintaining its premium reputation. The launch of this new model is a strategic move that aims to redefine Skoda’s position in the Indian automotive market
Skoda’s Strategic Push to Capture the Sub-Compact SUV Market
The Skoda Kylaq, based on the MQB-AO-IN platform, has been launched at an attractive price range between ₹7.89 lakh and ₹14.40 lakh (ex-showroom). This pricing strategy positions the Kylaq as one of the most affordable SUVs in the sub-compact segment, allowing Skoda to tap into a broader customer base.
The sub-compact SUV category has been one of the fastest-growing segments in India, with strong demand across urban and rural areas alike. By entering this space, Skoda is seeking to capitalize on the growing popularity of SUVs among Indian consumers.
The Kylaq is expected to play a crucial role in increasing Skoda's market penetration in India, especially in smaller cities and towns, where demand for compact SUVs is on the rise.
The model is seen as the brand's most affordable SUV in India and a pivotal addition to the company’s portfolio, which includes the Skoda Kushaq, Slavia, and Superb. Skoda is aiming to attract a new generation of buyers who are looking for a reliable yet affordable SUV while also reinforcing its reputation as a premium car brand. This move is designed to make the Skoda brand more accessible to a wider demographic, especially in tier-2 and tier-3 cities.
Skoda’s Vision for 2025: Aiming for Major Growth in India
Petr Janeba, the Brand Director of Skoda Auto India, spoke about the strategic importance of the Kylaq, stating that it represents the beginning of a new era for the brand in India. With the introduction of this new model, Skoda aims to become a more significant volume player in the Indian market. The company has set ambitious goals, targeting a 2.5 to 3 times increase in sales volume in 2025, with the Kylaq playing a key role in achieving these targets.
Skoda's decision to focus on the sub-compact SUV market is backed by a clear vision to increase its market share and build a stronger presence in India. To support this goal, Skoda is enhancing its sales and service infrastructure. The company plans to expand its network of touchpoints from 260 outlets to around 350 by mid-2025. This expansion is particularly focused on reaching customers in smaller towns and cities, areas where Skoda sees considerable growth potential. The increased number of service centers and dealerships will ensure that Skoda customers have better access to aftersales services, making the brand even more accessible across the country.
Skoda Kylaq’s Impact on the Brand’s Domestic Sales Strategy
The Skoda Kylaq is expected to contribute significantly to the company’s overall sales targets in India. Skoda India aims to sell around 80,000 units annually of the Kylaq, making it one of the key models in the company’s lineup. With the growing popularity of SUVs in India, particularly among younger buyers and families looking for compact yet spacious vehicles, the Kylaq is expected to meet the market demand with its impressive features, design, and performance. Additionally, the car's entry into the sub-compact SUV segment will further strengthen Skoda’s position in India, giving the brand a more diversified product lineup and ensuring that it remains competitive in the rapidly changing automotive landscape.
Skoda has already begun taking bookings for the Kylaq, and deliveries are expected to start in early 2025. The company has high expectations for this model and sees it as a key driver of growth in the Indian market. As the competition in the sub-compact SUV segment heats up, the Kylaq’s combination of attractive pricing, premium features, and robust performance will likely resonate with a broad spectrum of Indian car buyers.
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