Skoda Kylaq Škoda Auto is celebrating 25 years in India, marking its entry into the market in January 2000. The Czech car manufacturer established its first Volkswagen Group plant in Chhatrapati Sambhajinagar (formerly Aurangabad), initially assembling the Škoda Octavia. India has become a cornerstone of Škoda's global strategy, serving as a production and export hub for the ASEAN region, Middle East, Australia, and New Zealand. Škoda leads Volkswagen Group activities in the region and has developed India-specific models like the Kushaq, Slavia, and Kylaq, based on the MQB A0-IN platform. The company emphasizes sustainable practices, with one plant operating entirely on green energy and another expanding its photovoltaic system.
Beginning of legacy in India
Škoda Auto's journey in India began with the first-generation Octavia, assembled in rented facilities while the Chhatrapati Sambhajinagar plant was under construction. This marked the first time a Volkswagen Group brand established a local presence in the Indian market. The company's commitment deepened in 2018 when Škoda was entrusted with leading all Volkswagen Group operations in the region. This involved developing the MQB-A0-IN platform, specifically tailored for the Indian market, which has since underpinned the production of several key models.
Expansion journey
Škoda's India operations have expanded significantly over the past 25 years. The company now has two manufacturing facilities – one in Chhatrapati Sambhajinagar and another in Pune – along with a Technology Centre. In October 2023, Škoda also opened a logistics facility to export components to Vietnam, further solidifying India's role as a regional hub. The company’s recent product launches specifically designed for the Indian market reflect its growing focus on local consumer preferences.
The Kushaq, launched in 2021, was the first vehicle built on the MQB-A0-IN platform. The Slavia sedan followed in 2022, with both models developed and manufactured in Pune. The latest addition is the Kylaq compact SUV, Škoda's entry into the competitive sub-4-meter segment, which accounts for almost half of India's car sales. This model quickly garnered 10,000 orders within ten days of its launch.
“We have built on 25 years of experience in India to make this thriving market the cornerstone of our international growth strategy. 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%: 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%," said Klaus Zellmer, CEO of Škoda Auto.
Sustainability initiatives
Škoda's commitment to sustainability is evident in its Indian operations. The Chhatrapati Sambhajinagar plant operates solely on green energy, a significant achievement in reducing the company's environmental footprint. The Pune plant is also working towards CO2 neutrality by 2030 and has implemented a large photovoltaic system. This system generates up to 26.6 GWh of electricity annually, fulfilling 30% of the plant's energy requirements.
“Škoda was the first brand to establish Volkswagen Group’s presence in India, setting up its first plant in Chhatrapati Sambhajinagar back in January 2000. As Škoda celebrates 25 years in the country, the Group’s focus on the Indian market continues to strengthen. Today, our model lineup features advanced vehicles designed and built specifically for India, including the newly unveiled compact SUV, Škoda Kylaq. We are dedicated to enhancing our manufacturing capabilities & sales touchpoints and advancing our sustainability initiatives to deliver long-term value to our customers, employees, and communities,” added Piyush Arora, MD & CEO of Škoda Auto Volkswagen India.
Škoda's focus extends beyond manufacturing to environmental conservation. The Pune plant site, spanning 500 hectares, serves as a habitat for over 300 species of plants, trees, and animals. The company also actively engages with local suppliers and participates in infrastructure development, educational programs, and social initiatives within the community.
Product lineup
Over the years, Škoda has introduced various models to the Indian market, including the Fabia, Rapid, Superb, and Kodiaq, catering to a diverse range of customer preferences. The company aims to sell 100,000 cars annually in India by 2026, leveraging the popularity of models like the Kylaq to achieve this target. The quality and reputation of Škoda vehicles have been acknowledged through prestigious awards, such as the Škoda Slavia winning India's Sedan of the Year in 2022 and Car of the Year 2023 at the Acko Drive Awards. This recognition underscores the brand's success in delivering high-quality vehicles that resonate with Indian consumers.
