From competitive pricing and localized marketing to a robust dealer network and export aspirations, Skoda has approached the Indian market in a new way for launching the SUV.
25 Jan 2025 | 4438 Views | By Ketan Thakkar
Skoda Auto India is adopting a more localized and strategic approach with the launch of the Kylaq compact SUV, focusing on catering to the unique demands of the Indian market while aiming to strengthen its presence in the country’s highly competitive compact SUV segment. Autocar Professional analyzes the company's new ...
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Skoda Auto India is adopting a more localized and strategic approach with the launch of the Kylaq compact SUV, focusing on catering to the unique demands of the Indian market while aiming to strengthen its presence in the country’s highly competitive compact SUV segment. Autocar Professional analyzes the company's new launch strategy.
1. New Marketing Strategy
The journey of the Kylaq’s launch started well over a year ago, a strategy rarely employed even globally by Skoda. The company began creating a buzz around its sub-4-meter SUV segment early in 2023. This approach ensured sustained interest without audience fatigue, allowing ample time for prospective customers to familiarize themselves with the brand and the product itself.
Unlike earlier launches, where Skoda’s communication primarily revolved around premium positioning, Kylaq’s narrative has been deeply tied to its development “in India, for India.” By involving the Indian audience from the start — including the unique “Name Your Skoda” campaign — the company sought to generate excitement and a sense of ownership among potential buyers.
2. Competitive Pricing
The sub-4-meter SUV segment in India is highly competitive, with brands such as Maruti Suzuki, Hyundai, and Tata Motors dominating the market. Skoda acknowledged the price sensitivity of this segment and has shifted away from its traditional premium pricing model. The Kylaq’s pricing is designed to be on par with competitors, ensuring the product is accessible while retaining Skoda's hallmark of quality, safety, and performance.
This departure from the typical premium pricing strategy shows the company's desire to make Kylaq a volume driver in the Indian market.
3. Dealer Network
To support the Kylaq’s launch, Skoda has significantly expanded its dealership network, targeting over 350 touchpoints by mid-2025. This is a leap from the previous setup and reflects the company's focus on reaching underserved markets and smaller towns. The aim is to make the Skoda experience more accessible while ensuring a robust aftersales network that meets customer expectations.
Skoda is also equipping its sales consultants with extensive training, acknowledging the high level of product awareness among Indian consumers. With over 1,250 trained consultants, the company is ensuring that potential buyers have the best howroom and demo car experience.
4. Indianized Communication
Skoda is adopting a localized marketing approach, creating emotionally resonant content tailored to Indian sensibilities. Campaigns like the Rohit Shetty collaboration exemplify the company’s willingness to think outside the box and appeal to the Indian audience through relatable, high-energy storytelling.
Moreover, the company is intentionally pacing its communication. Rather than saturating the market with aggressive advertising right after the showroom debut on January 27, Skoda plans to intensify its marketing efforts by mid-February 2025, giving dealerships time to address the high number of pre-booking inquiries and deliver a better customer experience.
5. Simplified Product Offering
The Kylaq offers a simplified yet competitive lineup, focusing solely on petrol-powered variants while bypassing diesel and CNG options. This decision stems from a cost-benefit analysis and the recognition that turbocharged petrol engines offer an efficient and cost-effective alternative to traditional diesel. Skoda has tried to incorporate technology from its global platforms while offering features that rival higher-segment vehicles to position the Kylaq as an aspirational yet practical choice for customers.
6. Export Opportunities
While the initial focus remains on the Indian market, the Kylaq is being considered for export to select markets, including Australia, New Zealand, and parts of Southeast Asia and Africa. This export potential highlights Kylaq’s broader appeal and aligns with Skoda’s vision of making India a manufacturing hub for global markets.
7. Market Positioning
Skoda aims to achieve a sustainable 8% market share in the sub-4-meter SUV segment, translating to annual sales of 75,000–85,000 units. The Kylaq also plays a pivotal role in Skoda’s strategy to position itself as a volume brand in India. By leveraging Kylaq’s potential success, the company plans to drive growth across its portfolio, including the Kushaq, Slavia, and potential future models like seven-seater SUVs and EVs.
This launch showcases the company’s willingness to innovate and lay the foundation for its long-term growth in India. By combining global expertise with a local touch, Skoda is hopeful of breaking into the highly competitive Indian car market.