Skoda is banking on strong demand, network ramp-up, and high localization to scale up its sub-4-metre SUV play and break into mainstream volumes.
17 Apr 2025 | 9367 Views | By Prerna Lidhoo & Sarthak Mahajan
Czech automaker Skoda’s Kylaq SUV, its first bet in the competitive sub-4-meter segment, expects to hit 8,000 monthly sales by the end of 2025, according to Skoda Auto India Brand Director Petr Janeba. This is expected to help the company achieve its target of selling 100,000 vehicles annually in India ...
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Czech automaker Skoda’s Kylaq SUV, its first bet in the competitive sub-4-meter segment, expects to hit 8,000 monthly sales by the end of 2025, according to Skoda Auto India Brand Director Petr Janeba. This is expected to help the company achieve its target of selling 100,000 vehicles annually in India from 2026.
“We have 15,000 people still waiting to get their car. The waiting time ranges from 2 to 5 months,” Janeba told Autocar Professional.
“In March, we reached 280 touchpoints, which is slower than we’d like. But by August, we’ll ramp up to 350, allowing us to operate at full network capacity. So, by the end of the year, touching 8,000 Kylaqs is not a problem.”
Strong demand for the Kylaq drove Skoda Auto India to its highest-ever monthly sales in March 2025, with 7,422 total Skoda vehicles sold during the month. The company is undertaking its “fastest ramp-up in production to keep pace with surging demand.” The current stock levels of the Kylaq are just 10 units, but Janeba stressed that the focus is on long-term stability.
“Cars are flowing through dealers now, but this is only our third month. Sustaining momentum will depend on the expanded network, a more robust IT system, and hiring more front-facing staff,” he said.
With nearly 30% of passenger vehicle sales coming from the compact SUV segment, Kylaq is positioned to tap into this high-demand market, driving sales, boosting brand visibility, and bringing in much-needed incremental sales. By entering this space, Skoda aims to tap into a broader customer base, especially younger and first-time car buyers looking for a compact yet feature-rich offering.
The Kylaq marks the company’s entry into the sub-4 metre SUV segment, one of the most competitive and high-volume categories in the Indian passenger vehicle market.
The sub-4-metre SUV segment has emerged as a significant contributor to the automotive market. In 2024, compact SUVs accounted for approximately 1.2 million units, representing 48% of total utility vehicle sales in the country.
This segment includes popular models such as the Tata Punch, Maruti Brezza, Tata Nexon, Maruti Fronx, Hyundai Venue, and Kia Sonet, each achieving six-figure sales figures. Skoda is hoping to carve a space for itself in this fast-growing segment.
Skoda India sold 83,672 units in FY25, capturing 2% market share, according to FADA (Federation of Automobile Dealers Associations). The Kylaq is a key pillar of the Volkswagen Group’s India 2.0 strategy, spearheaded by Škoda.
The plan aims to capture a 3% market share and shift the brand from a niche premium player to a mainstream volume leader.
To ensure Kylaq’s competitive pricing, Škoda accelerated its local sourcing with 98% localization levels using the MQB-A0-IN platform, which was co-developed by Indian and Czech teams.
The Kylaq is produced at the Chakan plant in Pune, where production capacity has been expanded by 30%, reaching 255,000 units annually. The Kylaq adds to Skoda’s India-specific lineup, which includes the Kushaq and Slavia, all built on the locally adapted MQB A0-IN platform.