The auto major is not just looking at domestic sales, but also planning to ramp up exports to key markets from here, like the Middle East, North Africa and Australia.
Skoda is looking to almost triple its car sales to over 100,000 units and turn India into its top-three market in 2025, backed by its affordable SUV Kylaq, upcoming electric vehicle launch and reasonable service cost made possible due to locally available auto parts, its Global Board Member for Sales and Marketing Martin Jahn said on Tuesday.
“India for Skoda Auto is the most important foreign market after our sales slowdown in China,” he noted.
Jahn said the company has been extremely successful in Europe, wherein it has jumped from the number ten carmaker to the number four in just two years.
“However, we cannot just stand on one leg. The other leg for us is India,” he added.
He said that Kylaq, the most affordable car by Skoda in India, will allow the company to significantly grow in the country.
The deliveries of Kylaq, which is priced at Rs 7.89 lakh (ex-showroom), started from Monday.
“Currently, India is among the top 10 markets for us. This year, we expect India to significantly grow and be among the top five markets for us. Maybe, it could be among the top three,” he said.
When asked if the company would be able to sell more than 100,000 units in 2025, Jahn said, “We are confident we can cross that (benchmark).”
In India, Skoda's sales have declined during the last two years. The company sold 36,000 vehicles in 2024, a 26.3 per cent year-on-year (Y-o-Y) drop from 48,800 units in 2023.
This continues the downward trend from 2022, when Škoda sold about 53,700 vehicles in the Indian market.
Jahn said that the company is not just looking at domestic sales, but also planning to ramp up exports to key markets from here, like the Middle East, North Africa and Australia.
“The exports to these regions started last year. We are starting from smaller numbers, from lower 1000s. We would then be going to higher 1000s," he added.
Jahn said that the company will launch its first electric car in India this year. However, it is yet to decide which of the two cars -- Enyaq or the more affordable Elroc -- should be brought to the country.
“We are interested to see how the sentiment will evolve for electric cars in India. When we talk to dealers, some are excited while others are sceptical. We will take a decision based on the evolving customer sentiment and government regulations (new CAFE norms and EV investment norms),” he mentioned.
Skoda currently offers four models in India -- the Slavia sedan, Kushaq SUV, Kodiaq SUV and Kylaq SUV. Jahn clarified that Skoda is a small brand and it is not going to take any “crazy steps” to increase its market share in India.
“We have to invest into the transformation in two-three vehicles. We have to keep a balance between profitability and growth,” he added.
Jahn stated that while Skoda has plug-in hybrids in its global portfolio, whether such models can be brought to India or not depends upon the Indian government's support.
“Without subsidies or tax advantages, (selling) plug-in hybrids is not a sustainable business model,” he added.
Currently, plug-in hybrids are taxed at the same level of about 43-48 per cent as the petrol-run or diesel-run cars in India.
IMAGE: Martin Jahn.
Photograph: Kind courtesy, Skoda
The demand for diesel-run cars in India continues to remain strong. While Skoda does not sell any diesel-run cars in India right now, Jahn believes that bringing them to India does make sense.
“We have not taken a decision on it yet but I personally believe it might make sense,” he mentioned.
He mentioned that the servicing costs for Skoda cars are now within a reasonable range as the auto parts are locally available.
“When the cars were being imported, the parts were also mostly imported. So the service of Octavia or Superb (older models of Skoda) was very expensive. Now, for cars like Slavia and Kylaq, the service is very affordable, which is also quite important. The dealers are therefore excited and we are entering a growth phase,” he added.
Skoda delivered a strong global performance in 2024, selling 926,600 vehicles -- a 6.9 per cent year-on-year (YoY) growth -- despite challenges in key markets like India and China.
Germany, the automaker's largest market, recorded an 18.6 per cent Y-o-Y increase, reaching 187,100 units.
In Czechia, its home market, annual sales declined by 3.8 per cent Y-o-Y to 84,500 units. The UK emerged as a bright spot, with Skoda's sales rising 11.9 per cent YoY to 78,700 units.
The carmaker is gearing up to establish a new production line for its locally-developed electric vehicle (EV) at Pune's Chakan facility.
However, it is awaiting the details of the government's upcoming Scheme for Promotion of Manufacturing of Electric Passenger Cars in India (SPMEPCI), expected to be unveiled in March.
Designed to attract global automakers, the scheme significantly reduces import duties -- from 100 per cent to 15 per cent -- on EVs with a cost, insurance, and freight (CIF) value of $35,000 or more.
To qualify, automakers must commit a minimum investment of Rs 4,150 crore (approximately $500 million) in EV manufacturing.
Feature Presentation: Rajesh Alva/Rediff.com
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