Skoda targets 1 lakh annual sales by 2026 with new compact SUV

Skoda has approved the next phase of investment in India, which will go into combustion-engined and electric vehicles.

Published On Feb 28, 2024 08:00:00 AM

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Skoda Auto has approved its next phase of investment for India, which will go into the upcoming compact SUV and battery electric vehicles, says Klaus Zellmer, CEO of the company. The new investment will not only lead to a 30 percent expansion of production capacity, but also expand the addressable market for the brand to almost 50-60 percent of the fast-growing passenger vehicle market in the country.

New investment to go towards compact SUV and EVs
Skoda India targets 5 percent of market share by 2030
50 percent of Skodas made outside of Czech Republic come from India

With the addition of the compact SUV, Skoda Auto has set itself a target of selling 1 lakh vehicles annually by 2026, and gain a 5 percent market share by the end of the decade. The all-new compact SUV for India will be launched in a years’ time and it will be based on the MQB A0-IN platform, which the company officials claim is developed for India and will open the new chapter.

Kickstarting its “new era” in the country, Zellmer says India is “a key contributor” to the brand’s global growth, and the most “promising growth” market for years to come. “India is very important to Skoda. We've just fixed our future investment strategy in terms of product enhancements for the existing range, and also adding new products both in ICE and battery electric options. We have a very solid plan to grow the Skoda brand in India, and are targeting a market share of around 5 percent by 2030.”

The CEO claims that strengthening the India operations also strengthens the brands’ wider internationalisation potential. He added that about 50 percent of Skoda cars manufactured outside of the Czech Republic come from India, and the company's export strategy of India-developed Skoda continues to gain momentum.

“We are continually growing our capacity to respond quickly to the global market. It is clear that India plays a crucial role. Europe is important as a home market, but our strategic focus is on growing a new international foundation so that we can stand on two strong legs,” the CEO elaborated.

Skoda Auto international sales, EV strategy

Globally, Skoda sold more than 8,66,000 cars, posting an increase of 18.5 percent from the year before, and almost double the industry growth rate across global markets of 9.5 percent. During the year, the company also showcased its EV strategy with six new all-electric models in the coming years, and also launched several new generations and updates to its ICE range.

Zellmer said its electric Enyaq iV is the foundation of its EV strategy globally, and the same is being tested in India. The Enyaq is already proving itself in a heavily competitive EV field in Europe and it was the best-selling fully electric car in Germany.

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Skoda exploring a new modular platform for India

Skoda, Volkswagen line up 4 new launches for 2024