Skoda Kylaq: Can it carve its space in India’s packed compact SUV segment?

Skoda has officially launched its first sub-4 metre compact SUV. With competitors such as the Maruti Suzuki Brezza, Tata Nexon, Hyundai Venue, and Kia Sonet already claiming their share of the pie, Skoda’s challenge is clear– to prove that the Kylaq has a right to win in this fiercely competitive market.

“Kylaq is such an important addition to our new family of products. Europe is the key market but the strategic focus for Skoda is expanding key global markets and India is our second pillar. 50% of our cars outside Czech Republic are made in India,” Klaus Zellmer, Chairman and CEO, ŠKODA AUTO said.

The company has set a sales target of 100,000 units by 2026. With premium features and a design rooted in European refinement, the Kylaq certainly has the look, but will that be enough to win back the Indian customer who has become increasingly demanding?

 “We're focused on overall value proposition for the Indian market. As India is the most important market for Skoda outside Europe, Kylaq is the answer. This is why we increased our local supply base by 10% and production capacity by 30%,” Piyush Arora, MD and CEO, ŠKODA Auto Volkswagen India, said.

Skoda has always been seen as a premium brand in India. However, the subcompact SUV segment demands a fine balance between features and affordability. Even though it's priced competitively at an entry level pricing of Rs 789,000, the Kylaq faces the challenge of overcoming deeply entrenched local players, many of which offer high-end features at accessible price points.

“Our mission is to democratise European technology on Indian roads. We entered India 24 years ago and Kylaq is a part of our biggest mission in India. It sets a new benchmark in the sub-4 m segment. This is the biggest and the most competitive segment in India and will expand ŠKODA's footprint in India,” Petr Janeba, Brand Director, Škoda Auto India said.

The Kylaq’s success will likely depend on how well Skoda addresses the long-standing concerns around after sales service. Janeba said that the company is increasing its footprint from 260 to 350 touchpoints by the next year. “This will also increase our addressable market from 20% to 60%. The aftersales and customer experience are aspects on which that the company is very “very hard” on,” he added.