Skoda India targets 2026 growth through refreshed Kushaq, automatic transmission push, wider market coverage and a 10-product rollout.
20 Jan 2026 | 332 Views | By Prerna Lidhoo
Skoda Auto India is heading into 2026 on the back of its strongest performance yet last year. At the centre of Skoda’s India strategy is the company's new product offensive, according to Martin Jahn, Skoda Auto board member for sales and marketing.
"We became No. 3 in Europe and ...
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Skoda Auto India is heading into 2026 on the back of its strongest performance yet last year. At the centre of Skoda’s India strategy is the company's new product offensive, according to Martin Jahn, Skoda Auto board member for sales and marketing.
"We became No. 3 in Europe and achieved strong growth in overall global markets. India became our fourth market after Germany, Czech Republic and the UK. We have a very strong exports base in India for middle east, Vietnam and Africa. We more than double our sales and became no7 in the Indian market and we're happy we achieved it," Jahn said.
This momentum, Ashish Gupta, Brand Director, Skoda Auto India said, will be channelled into an aggressive product and network push this year. Skoda plans to continue expanding its dealership and service footprint, while rolling out a series of product actions through the year. The company reached 325 touchpoints this year.
According to Gupta, the focus is not just on volume growth but also on strengthening ownership experience and accessibility across markets. "We doubled our volumes and grew 107% in 2025. With a stronger portfolio, India is the growth engine for Skoda brand globally," Gupta said. He added that the results we achieved last year were fitting for a milestone year. "Customer acceptance and trust helped us make it truly special and that gives us a very strong base as we move forward into 2026," Gupta said.
The company plans to grow to 90% market coverage from 80% today with 10 product actions this year. The midsize SUV Kushaq, the brand’s first product under the India 2.0 programme, has introduced several segment-first features, including a panoramic sunroof and front and rear seat massagers.
“The Kushaq is more than just a rational product for us, it’s emotional,” Gupta said. “It anchors the Skoda brand in India. With the updates, our aim is to strengthen the space it already occupies and stand out in a highly competitive segment. We owe it to our customers to deliver strong value while ensuring the product competes effectively,” Gupta said.
This approach ties into Skoda’s broader philosophy of “democratising European engineering” for Indian roads. According to Gupta, the strategy rests on three pillars: relevance, differentiation and trust. With aspirations rising beyond metro cities, Skoda is increasingly tuning its products to suit local tastes while retaining its European engineering DNA.
The midsize SUV segment itself continues to be a major growth engine for the industry. After growing by around 10–12 percent last year, driven by multiple new launches and increasing premiumisation, the segment remains attractive for both customers and manufacturers, Gupta says. "The category will broaden further, with more choices in features, powertrains and configurations," he adds.
A key differentiator for Skoda within this space has been its strong push for automatic transmissions. The brand’s “Real Automatic” strategy, introduced last year, aligns with a clear shift in buyer behaviour. Automatics now account for nearly 35–40 percent of the Indian market, compared to under 10 percent a decade ago. For Skoda, that figure is even higher, with automatics contributing close to 65 percent of its sales. This year the company aims to touch 70% penetration.
“Ease of mobility has become critical, whether you’re in a metro or a smaller city,” Gupta said. “Concerns around fuel efficiency and maintenance have largely gone away.” Building on this, Skoda will introduce an eight-speed torque converter automatic in the segment, reinforcing its focus on driving comfort and convenience.
Skoda is also evaluating multiple powertrain options to address regulatory changes and evolving customer preferences. CNG is a strong consideration for the Kylaq, where demand in the sub-4m SUV segment can reach up to 25 percent and the technology could eventually extend to the Kushaq. EVs remain a necessity from both regulatory and market perspectives, while hybrids in various forms "are under active evaluation at a group level".
Exports continue to play a strategic role as well. India remains an important manufacturing and export hub for the Volkswagen Group, with ASEAN and other emerging markets offering growing potential. Alongside this, localisation remains central to Skoda’s growth plan not just in components, but also in R&D, product development, communication and management strategies, Gupta said.
While the Kylaq now contributes close to 40 percent of Skoda India’s volumes, Gupta dismisses concerns about over-dependence. “The sub-4m SUV segment accounts for around 30 percent of the Indian market. Any product in that space will naturally be a big contributor, that was always part of the strategy,” he said.
As Skoda works towards the Volkswagen Group’s target of a 5 percent market share in India by 2030, Gupta emphasises that sustainable growth will be driven by trust and consistency. “Getting customers into the brand is one thing. Keeping them is harder,” he said. “Our focus will be on service expansion, excellence at every touchpoint and building long-term trust. That is the real foundation for success.”