Driven by strong Kylaq sales, tier 2–3 expansion, and GST-led tailwinds, the Czech carmaker is reshaping its growth strategy for 2025.
25 Sep 2025 | 6977 Views | By Darshan Nakhwa
Škoda Auto India aims to double its market share in 2025 from 0.8% last year, driven by network expansion and new product launches. The company also plans to expand its retail and service footprint to 350 touchpoints across the country by the end of the year.
“We are looking ...
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Škoda Auto India aims to double its market share in 2025 from 0.8% last year, driven by network expansion and new product launches. The company also plans to expand its retail and service footprint to 350 touchpoints across the country by the end of the year.
“We are looking at doubling our market share. It is not only about what volumes we are targeting, but also about the opportunities the new GST reforms could offer,” said Ashish Gupta, Brand Director, Škoda Auto India, during a media roundtable.
Between January and August 2025, Škoda sold 46,616 vehicles in India, already surpassing the 36,000 units it managed in all of 2024. The Kylaq accounted for over 30,000 of these sales, while the Kushaq and Slavia contributed around 17,000 units combined. The company’s portfolio was further bolstered recently with the launch of the updated Kodiaq SUV.
Škoda is betting big on the Kylaq, its most affordable compact SUV, to crack India’s high-volume market. Targeting 8% share in a segment led by Tata Nexon, Maruti Brezza, Hyundai Venue, and Kia Sonet, the brand aims for annual sales of 75,000-85,000 units.
Built on the India-focused MQB A0-IN platform, the Kylaq packs a 1.0 TSI engine, manual/automatic options, ventilated seats, a 446-litre boot, and a 5-star safety rating. Since its debut in November 2024, Kylaq has been driving Škoda’s sales.
Alongside its mainstream models, the Czech carmaker has announced the relaunch of the Octavia RS performance sedan. Pre-bookings for the model will begin on October 6 via the company’s website, with prices to be announced on October 17 and deliveries starting November 6. Only 100 fully built units (FBUs) of the sedan are earmarked for India in 2025.
Škoda will offer the UK-spec Octavia RS in India, manufactured in the Czech Republic. The sedan is powered by a 2.0-litre turbo-petrol engine producing 265 bhp and 370 Nm, and retails in the UK at £39,965 (approx. ₹47.7 lakh). In India, the model is expected to command a higher price due to its FBU import status.
On the prospects of local assembly of Octavia, Gupta said: “Currently, we are not in discussion for local assembly or parts and components operation. But having said that, that is not something which is off the table at any point of time. Octavia has been an icon and established the Škoda brand in India. So, we are always evaluating whether it makes sense or a business case to bring it under parts and components as well.”
On the network expansion, Škoda continues to push aggressively into smaller cities. The brand currently sells four models across 312 touchpoints in 177 cities, with a target of 350 outlets by 2025. “75% of our new geographic expansion has been in tier 3 cities and more than 90% in tier 2 and 3 towns combined. Nearly 70% of our new service touchpoints have been in these markets in the last six months, and almost 65% of our showrooms are now located outside metros,” Gupta said.
Škoda's journey in the Indian market has been a tale of unrealized potential gradually turning into strategic success. Despite entering India in 2001, the Czech automaker has historically struggled to capture significant market share, hovering around 1-2% compared to domestic giants like Maruti Suzuki and Hyundai.
The company's challenges stemmed from several factors. India's complex tax regime significantly benefits sub-4-meter vehicles, with compact cars taxed at lower rates, while larger vehicles attract 40-50% tax. European manufacturers like Škoda, known for larger vehicles, struggled to deliver cost-effective models within these constraints.
Additionally, limited localization meant higher prices, while their focus on premium segments restricted volume growth. The absence of fuel-diverse options like CNG and diesel variants further limited appeal in the price-sensitive Indian market.
The turning point came with Škoda's India 2.0 strategy, investing €1 billion to develop locally-relevant products. The MQB-A0-IN platform, developed specifically for India, enabled high localization and better pricing. The Kushaq and Slavia, launched in 2021-22, marked initial success with their 5-star safety ratings and competitive features.
The real breakthrough arrived with the Kylaq, Škoda's first sub-4-meter SUV launched in November 2024. This value-focused approach is now yielding results for the company.