Skoda Auto India is counting on new SUVs to boost its performance in 2025

With the earlier announced compact SUV as the entry-level model on one end, and the new Kodiaq on the other, the VW-owned Czech brand looks to accelerate its slowing sales journey.

Skoda, owned by VW, is speeding up sales with a new compact SUV and the latest Kodiaq SUV, aiming to boost their sales.

In today's fast-changing market, it's important to keep car models updated regularly. Three years ago, Skoda Auto India introduced the Kushaq SUV. Since then, they've sold more than 53,700 units each year, more than doubling their sales.

But last year, Skoda sold almost 6% fewer cars, dropping to 48,800 units. Now, the Czech carmaker plans to boost sales with several new models next year.

So, it's no wonder they're focusing on SUVs to do the job. Skoda is gearing up to release the second generation of its top-tier SUV, the Kodiaq. Expected to arrive by June next year, this SUV will be larger and more expensive than the current model. Skoda introduced the Kodiaq, its first full-size 7-seater SUV, in India 7 years ago. Since then, they've sold nearly 10,000 units in the market.

There’ll be a gap before the new gen version of the model. "We would like to have a break between the old one and the new one for some time,” Petr Janeba, Brand Director, Skoda Auto India, tells ETAuto. The break could last about three months. The upcoming Kodiaq is built on Volkswagen's MQB-EVO platform. As a specialized model, the Kodiaq made up 5% of Skoda Auto India's sales in 2023, totaling just over 2,440 units for the year.

On the other end of Skoda's SUV lineup will be its first compact SUV, expected to hit dealerships by February next year. This compact SUV is a significant move in Skoda's 'Next Level Strategy'. One of the main aims of this plan is to achieve annual sales of at least 100,000 units in India by 2026.

“We are bringing a most adult car in the segment. We are basically bringing a platform from the upper segment to a lower segment. So we are not doing a really small car,” says Janeba. The compact SUV will use the same MQB-AO-IN platform as the larger Kushaq. To prepare for its launch and compete with established rivals like Maruti's Brezza, Tata's Nexon, and Hyundai's Venue, Skoda Auto India aims to expand its brand presence from 260 touchpoints to 350 by next year.

While enhanced market reach will be important for the brand’s growth, what is equally crucial, if not more, is to make the compact SUV score well on the affordability index. ”We understand where the music is playing, where we need to start. And we will be following very much competition. So the prices will be competitive,” says Janeba. Skoda Auto India expects the compact SUV to contribute anywhere between 60,000 and 90,000 units a year.

As for its current best-seller Kushaq, which is facing stiff competition from fresher models,and its sedan sibling Slavia, Skoda is working on sprucing them up. Janeba says, “We are upgrading even our Kushaq, Slavia range, but step by step.”

One key learning that Skoda Auto India gets from the Indian market is that it needs to be more frequent in providing new features, upgrades for its models, And, not to mention keeping after-sales costs competitive too. “We are setting up the prices of the spare parts and labor for the dealers. We have pan-India the same spare part prices, and the labor charges, which again, like the car, will be competitive,” says Janeba.

Janeba and his team aim to elevate the Skoda brand starting in 2025, with the goal of making India the second largest market for the global OEM. Currently, India ranks among the top five markets for the carmaker headquartered in Mladá Boleslav. This year, however, the passenger vehicle market is showing signs of slowing down, so there may not be much noteworthy growth to report.