Škoda Auto entered the highly dynamic Indian market 25 years ago: In January 2000 the Czech car manufacturer laid the foundation stone for its plant in Chhatrapati Sambhajinagar (formerly Aurangabad until 2022) and was the first Volkswagen Group brand to establish a presence on the local market. The Škoda Octavia became the first model assembled locally. To date, India has become a key market in Škoda’s internationalisation plans, helping the company to effectively leverage existing sales potential in the ASEAN region, Middle East, Australia and New Zealand. On behalf of the Volkswagen Group, Škoda Auto has been spearheading all activities in the region jointly since 2018. Today, the brand developed and produces three models locally in India for India, based on the localised MQB A0–IN platform: the Kushaq, the Slavia, and, most recently, the Kylaq compact SUV, which expands the line-up into the popular sub-4 metre segment.
“We have built on 25 years of experience in India to make this thriving market the cornerstone of our international growth strategy. With its tremendous talent pool, growing consumer demand, and access to other markets, India is becoming our second pillar outside Europe and helping leverage further sales potential in ASEAN, the Middle East, and the Indo-Pacific region. Škoda has been a notable brand in India since we entered the market with the Octavia in 2001. We now produce in two plants. We have launched three all-new models specifically for India, achieving localization of up to 95 per cent: the Škoda Kushaq, Slavia, and just recently the Kylaq compact SUV, which complement the Octavia and Superb we also sell through a growing dealer network. In the last two years, we have increased customer touchpoints across the country by 35%. India also contributes to the global sustainability goals of Škoda Auto. One plant already runs entirely on green energy, while the plant in Pune expanded its photovoltaic system to deliver up to 30% of its electricity needs. I want to thank all our Indian colleagues for helping power the next stage of our growth, and especially our customers for their trust in our products. With this passion, we can achieve even greater things in the next 25 years!”
Klaus Zellmer, CEO of Škoda Auto
Models struck a chord with customers and experts alike
The first Škoda model introduced to Indian customers was the first generation of the modern Octavia, assembled from imported parts in rented facilities alongside the construction of the plant in Chhatrapati Sambhajinagar. Over time, other Škoda models, such as the Fabia, Rapid, and later the Superb and Kodiaq, also attracted the attention of Indian customers.
A decisive step for Škoda in India came in 2018 when the Volkswagen Group entrusted the brand with jointly spearheading all Group activities on the market. As part of this, Škoda was tasked with developing the MQB-A0-IN platform, designed exclusively for the Indian market. The first vehicle built on this platform was the Kushaq, which entered production in Pune in 2021. Just a year later, the Slavia sedan was launched, with its development and manufacturing also carried out in Pune. The latest addition to Škoda’s portfolio for the Indian market is the Kylaq SUV, Škoda’s first model in the popular sub-4-metre segment, accounting for nearly 50% of car sales in the Indian market. The new model received 10,000 orders within just ten days of its launch and will contribute to the brands annual sales target of 100,000 cars in India by 2026.
The quality and reputation of Škoda’s vehicles in India is reflected not only in strong customer interest but also in numerous prestigious awards. For instance, the Škoda Slavia was named India’s Sedan of the Year in 2022 and won Car of the Year 2023 at the Acko Drive Awards.
Investments and employment support
In the meantime, the Indian market has developed into one of the key markets for Škoda and a strategic hub for the wider ASEAN region, the Middle East, Australia, and New Zealand. In addition to its assembly lines in Chhatrapati Sambhajinagar and manufacturing plant in Pune, Škoda has established a Technology Centre there. Moreover, in October 2023, Škoda opened a modern logistics facility for the export of components to Vietnam, a market the company entered in 2023.
CO2-neutrality of all its plants in India by 2030
Sustainable production is a major priority for Škoda, also in its Indian plants: The facility in Chhatrapati Sambhajinagar operates entirely on green energy, while the Chakan plant in Pune is on track to achieve CO2 neutrality by 2030. On top of that, this 500-hectare plant site provides a habitat for more than 300 species of plants, trees and animals. Furthermore, the company is involving local suppliers in India and plays an active role in infrastructure development, supporting education and social initiatives. At its plant in Pune, Škoda expanded its photovoltaic system which is now capable of producing up to 26.6 GWh of electricity annually, covering up to 30% of the site’s electricity consumption.
SOURCE: Škoda
