Škoda has unveiled the name of the upcoming compact SUV, which it has promised to be priced right for the Indian market
21 Aug 2024 | 5265 Views | By Autocar Professional Bureau
Kicking off the ambitious revival strategy for its Indian business, Škoda Auto has unveiled the name of its highly anticipated compact SUV: the Škoda Kylaq.
This announcement marks a significant milestone in the Czech automaker's ambitious India 2.5 strategy, aimed at solidifying its position in one of the world's ...
This is an Autocar Pro Plus article. Subscribe to continue reading.
Kicking off the ambitious revival strategy for its Indian business, Škoda Auto has unveiled the name of its highly anticipated compact SUV: the Škoda Kylaq.
This announcement marks a significant milestone in the Czech automaker's ambitious India 2.5 strategy, aimed at solidifying its position in one of the world's fastest-growing car markets.
The naming of the Kylaq was the result of a "Name Your Škoda" initiative, launched in February 2024, under which fans and potential customers to suggest names beginning with 'K' and ending with 'Q'.
Set to make its global debut in 2025, the Kylaq represents Škoda's first foray into the fiercely competitive compact SUV segment in India. Based on the MQB-A0-IN platform - the same architecture underpinning the successful Kushaq SUV and Slavia sedan - the Kylaq promises to combine Škoda's renowned European engineering with specific adaptations for Indian road conditions and consumer preferences.
The Kylaq will be the first implementation of Škoda's Modern Solid design language in India, featuring high ground clearance, ample wheel space for tackling uneven surfaces, and refined DRL light signatures. These design elements aim to give the compact SUV a distinctive character that stands out in a crowded market.
Strategic Importance for Škoda
The launch of the Kylaq is more than just the introduction of a new model; it's a cornerstone of Škoda's India 2.5 strategy. This plan represents a pivotal shift in the company's global focus, with India emerging as a key market following strategic exits from Russia and a planned phase-out in China.
Škoda Auto CEO Klaus Zellmer recently underscored the importance of the Indian market, stating, "From a business perspective, it's not always wise to stand on only one leg. If it gets a little shaky, you want to stand on the second leg, which for us is India... It is the place to be, going forward."
The company's ambitions are clear: to become the best-selling European brand in India by 2030. With the Škoda Auto Volkswagen group currently holding a market share of around 2.25%, the goal is to increase this to 4% by 2026 and 5% by 2030. In terms of volume, Škoda aims to sell 100,000 vehicles annually in India by 2026, while also using the country as an export hub for ASEAN and Middle East regions.
Targeting the Heart of the Market
The compact SUV segment has emerged as the largest sub-segment in the Indian passenger vehicle market, accounting for over 25% of total industry volumes at the end of 2023. By entering this segment, Škoda is positioning itself to compete with established players like Maruti Brezza, Kia Sonet, and Tata Nexon.
"With the sub-4-metre, we want to significantly increase our market share in the most demanding segment which comprises more than 50% of the market. I'm convinced that it has hit the bullseye in terms of technology, fit and finish," Zellmer had said.
Learning from Past Experiences
Škoda's approach with the Kylaq reflects valuable lessons learned from its previous experiences in the Indian market. The company acknowledges that its traditional premium positioning and tendency to "over-engineer" its vehicles led to higher price points, which sometimes put its products out of reach for many Indian consumers.
To address this, Škoda is focusing on striking the right balance between cost and quality. The company plans to achieve this through increased localization, with the Kylaq expected to have 75-76% local content. Additionally, Škoda aims to leverage excise benefits and pass on the savings to customers, making the Kylaq more competitively priced in the range of Rs 8 lakh to Rs 15 lakh.
Better Customer Engagement
The "Name Your Škoda" campaign represents a shift in how Škoda engages with its potential customers in India. By involving the public in the naming process, the company has not only generated buzz around the new model but also fostered a sense of ownership and connection with the brand.
The winner of the naming contest will become the first owner of the Škoda Kylaq when it launches in 2025, further reinforcing this connection between the brand and its customers.
Looking Ahead
As Škoda prepares for the Kylaq's launch in 2025, the automotive industry will be watching closely. The success of this model could potentially reshape the compact SUV landscape in India and serve as a litmus test for Škoda's revamped strategy in emerging markets.
With its blend of European design, localized engineering, and the right price, the Škoda Kylaq could give the brand the much needed break it has been waiting for.