Škoda Sees the India Market Turning 80% Automatic in the Next Decade: Ashish Gupta

Škoda Auto India is doubling down on a structural shift in consumer behaviour, with Brand Director Ashish Gupta projecting that more than 80% of the Indian passenger vehicle market could turn automatic over the next 8–10 years.

“Customers today prioritise ease of driving and convenience. Earlier concerns around mileage and serviceability of automatics have largely disappeared,” Gupta told Autocar Professional, adding that the shift is already visible across Škoda’s portfolio.

Currently, automatics account for 65–70% of sales in the Škoda Kushaq and Škoda Slavia, while even the more price-sensitive Škoda Kylaq sees automatic penetration nearing 55%.

Kushaq Sees Strong Early Interest, With Top Variants Leading

While official bookings for the updated Kushaq are set to open later this month, Gupta said early customer response has been “quite positive”, with interest skewed towards higher trims such as Prestige and Monte Carlo.

Addressing concerns around overlap between Kushaq and Kylaq, Gupta dismissed fears of cannibalisation, pointing to a widening price gap aided by tax changes and an expanded Kylaq lineup.

“Customers don’t look at segments the way the industry does. They evaluate products based on value at a given price point,” he said, underlining Škoda’s strategy of widening its price-band coverage to attract a broader customer base.

On the absence of features like ADAS and 360-degree cameras in the newly launched Kushaq, Gupta said that while many such features remain underutilised, customer expectations, shaped by competition, necessitate their inclusion in the future. However, Škoda is taking a calibrated approach. “It’s not about adding features for the sake of it, but ensuring they are suited to Indian conditions,” he said, citing the introduction of Park Pilot as a more practical solution for most users.

He added that localisation will remain central to Škoda's India strategy. “If you have to be relevant in India, there is no option but to localise. Imports can never substitute local production,” he said, adding that FTAs may only help bring select global models in slightly higher volumes, not trigger a surge.

Tier-2 and Tier-3 Markets Drive Growth

Smaller cities are emerging as a key growth engine, contributing 45–48% of Škoda Auto India’s sales. The company plans to expand its network from 183 cities to 200 by the end of the year, increasing touchpoints from 325 to 350.

Gupta added that while electrification remains inevitable, driven largely by regulation, Škoda will maintain flexibility in its powertrain strategy amid global uncertainty around EV adoption.

“No company has the resources to invest in every technology. You have to choose your bets and be ready to change if the market doesn’t evolve as expected,” he said.