Škoda Auto India has announced the return of its iconic performance sedan, the Octavia RS, with pre-bookings opening on October 6 through the company’s website.
Prices will be revealed on October 17, while deliveries are set to begin on November 6, with only 100 fully built units (FBUs) earmarked for the Indian market in 2025, a senior company official said.
“Earlier this year, we promised that a global icon would return to India. Today, I’m proud to announce that we’ve delivered on that promise with the Octavia RS. This badge carries an unmatched legacy, one that has sparked passion among enthusiasts across the globe for over two decades,” Ashish Gupta, Brand Director, Škoda Auto India said during a media roundtable.
The Octavia RS, short for Rally Sport, has long been synonymous with performance and motorsport-inspired engineering. In the UK, the sedan is powered by a 2.0-litre turbo-petrol engine delivering 265 bhp and 370 Nm, retailing at £39,965 (approx. ₹47.7 lakh). In India, the model is expected to carry a higher price tag due to its FBU import status. Škoda will offer the UK-spec model manufactured in the Czech Republic.
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.”
Škoda’s Octavia RS first arrived in India 2004 as the country’s first turbocharged petrol engine passenger car, quickly earning cult status among enthusiasts. The Octavia RS 230 (2017) and RS 245 (2020 Auto Expo) further cemented its fan following, though both were limited imports. The standard fourth-gen Octavia, locally assembled, was discontinued in 2023 after BS6.2 norms took effect, even as the model continued overseas with a facelift. So far the company has sold over 100,000 units of Octavia badged vehicles in India.
Alongside the RS launch, Škoda continues to push aggressively into smaller cities. The brand currently sells four models–Kushaq, Slavia, Kodiaq, and Kylaq–priced between ₹7.54 lakh and ₹45 lakh 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 that dominate with 40%+ share.
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. Starting at ₹7.55 lakh after GST cuts in September 2025, the Kylaq offers segment-leading features including ventilated seats, a 446-liter boot, and 5-star safety rating. In August 2025, the Kylaq posted 3,099 unit sales, quickly becoming Škoda's bestseller in India.
This value-focused approach is yielding results. In India, sales grew 107.7% year-on-year to 33,300 vehicles in H1 2025, marking a record for the brand. By addressing India's unique requirements – compact dimensions, competitive pricing, high localization, and strong safety credentials – Škoda has finally cracked the code to delivering value in India's demanding market.