Skoda to launch compact SUV in 2025, eyes 5 per cent market share in India by 2030

Czech car maker Skoda is set to expand its product portfolio in India. The company will launch an all-new compact sub-4 metre sports utility vehicle (SUV) in the country in 2025. An all-electric vehicle is also on cards as it looks to target a 5 per cent market share in the Indian passenger vehicle market by 2025.

It has been over two years since Skoda Auto drove in the first product under the Volkswagen Group company's India 2.0 plan. The Kushaq SUV was launched in 2021. That was followed by the Slavia mid-size sedan in 2022.

Aided by the Made in India Kushaq and Slavia, as well as the imported Kodiaq that it also sells here, Skoda topped 1,00,000 sales over the last two years.

The company is now entering the in-demand compact SUV segment, where it will take on strong competitors like Maruti Suzuki Brezza, Tata Nexon and Hyundai Venue. The segment accounted for almost 25 per cent of the total passenger vehicle industry volumes. Like Kushaq and Slavia, the new compact SUV will also be based on the MQB-A0-IN platform, which was developed and localised for India.

"We have more than doubled sales in India since 2021 and we are now taking the next step by further expanding the range of models designed for customers in India and internationally. The all-new compact SUV due in 2025 will add an important segment for customers," said Klaus Zellmer, CEO, Skoda Auto a. s.

He is confident the expanding Skoda portfolio will contribute to its India growth target of achieving a market share of around 5 per cent by 2030.

With the new launch, Skoda Auto India is targeting annual sales volumes of 1,00,000 units by 2026.

"We will be targeting the heart of the Indian automotive market, which is a clear indication that the Skoda brand is here to stay and grow," said Jan Bures, executive director, sales, marketing and digital at Skoda Auto Volkswagen India.

Skoda will expand its capacity at the Chakan plant by 30 per cent as it gears up for the new SUV.

Apart from the new compact SUV, Skoda officials also confirmed they will be entering the electric vehicle space in the country with the all-electric Enyaq iV later this year.

The Enyaq iV has seen strong sales in Europe and Skoda has been testing it in India for some time now. The Enyaq should battle it out with the likes of Kia EV6, which is sold as a completely built unit in India.

Skoda is also evaluating bringing back its successful brands like Superb and Octavia, but is currently under discussions on the kind of engine it will be powered with, especially in the case of the Octavia, said Petr Janeba, brand director, Skoda Auto.

Skoda pushing deeper into the SUV market is not surprising, considering that the segment is growing twice as fast as the overall passenger vehicle market.

While the overall PV volume is seen rising 5-7 per cent next fiscal, demand for SUVs is expected to accelerate at over 12 per cent, according to ratings agency CRISIL.