Škoda Auto India is set to drive in a new car by the first half of next year to reach its target of 100,000 unit annual sales in the country by 2026.
The compact sports utility vehicle (SUV) will be positioned against the likes of Maruti Brezza, Hyundai Venue, and Kia Sonet, and would be competitively priced, a senior company official said.
Škoda will also export the car to right-hand-drive markets like Australia, New Zealand and the Asean nations.
Petr Janeba, brand director, Škoda Auto India, told Business Standard, “We are eyeing volumes... Brezza, Venue and Sonet are our competition in this segment for this car, and we would price our car competitively."
Maruti Brezza is priced at Rs 8.34-14.14 lakh. Hyundai Venue, a 5-seater compact SUV, is priced between Rs 7.94 lakh and Rs 13.48 lakh. Kia Sonet, meanwhile, carries a price tag of Rs 7.99-15.69 lakh.
The European auto major is eyeing a 5 per cent share in the Indian PV market by 2030 for its Volkswagen family of brands.
Škoda produced 48,000 units in 2023, while there are several alternatives on the table for the electric vehicle (EV) game plan, the company is awaiting clarity on government regulations for the same.
“Of the six EVs (announced globally), we definitely want to bring four to India.
"Of this, the biggest one will be a seven-seater EV from Europe and the smallest one a completely-knocked-down (CKD) unit manufactured in Chakan, Pune.
"Two other cars would be parts andcomponents cars.”
With this compact SUV, Škoda’s addressable market in India increases significantly.
“Currently, our addressable market is sub-27 per cent or so (of the overall PVs), and with this addition, it would go up by at least 50 per cent or so.
"Therefore, we would be able to address 80 per cent of all new car buyers in India,” Janeba said.
The company is expanding by around 30 per cent.
The investments for this car are not finalised yet as all suppliers are not finalised.
It will be done by October-November this year.
He added that a "lot of countries are asking for this car" but the firm will first serve the local demand and then focus on exports.
Outbound shipments, thus, would not start before October 2025.
India crucial to global growth Klaus Zellmer, chief executive officer, Škoda Auto a.s, said India was crucial to the global growth of the company, “both because of its own market strength and as a development and manufacturing base for our expansion in new markets.”
Zellmer said the company had more than doubled sales in India since 2021 and was now “taking the next step by expanding the range of models designed for customers in India and internationally”.
Zellmar added that the new compact-SUV will add an important segment to customers and the expanding Škoda portfolio will contribute to “our India growth target of achieving a market share for the Volkswagen family of brands of around 5 per cent by 2030”.
Meanwhile, the Enyaq, a popular EV in Europe, is also being tested in India.
“The Enyaq is probably too big to be localised.
"It is our most successful EV globally. We have tried to test this in India, and let’s see what the response is from the Indian customer,” Janeba said.
