Photo Credit: Auto Car Pro
Highlights:
- 500,000 locally manufactured vehicles rolled out from Pune and Aurangabad
- 70% of production attributed to the Pune plant
- Flagship models include Kushaq, Slavia, and the new Kylaq
- Strong export strategy supporting Volkswagen Group’s global operations
- Reinforces “Make in India” and localization efforts
A Major Milestone in Indian Automotive Manufacturing
Škoda Auto Volkswagen India Private Limited (SAVWIPL) has achieved a significant manufacturing milestone—rolling out its 500,000th locally produced vehicle. This achievement represents a critical step in the company’s long-term commitment to the Indian market, aligning with the government’s “Make in India” initiative and underlining the success of its localization strategy.
Since launching its first car—the Octavia—in 2001, the company has steadily expanded its production and product portfolio. Today, the milestone signifies more than two decades of progress in India’s evolving auto industry.
Dual-Plant Production Strategy
SAVWIPL operates through two primary manufacturing facilities:
- Pune plant: Handles approximately 70% of total production, including body assembly, paint, and engine manufacturing.
- Chhatrapati Sambhaji Nagar (formerly Aurangabad): Supports the remaining production, primarily for premium models.
Together, these facilities have helped the brand deliver half a million vehicles under the umbrella of the India 2.0 project, built on the MQB A0-IN platform tailored specifically for the Indian market.
Models Leading the Charge
Key models contributing to the production milestone include:
- Kushaq: The compact SUV that has been a major success since launch.
- Slavia: A premium sedan designed with Indian road conditions and preferences in mind.
- Kylaq: The latest sub-4 metre SUV model, recently introduced and already integrated into the production milestone.
These models have helped SAVWIPL not only expand its domestic footprint but also establish India as a strategic export base.
Growing Export Capabilities
In addition to satisfying local demand, India-made vehicles and components are now being exported globally. Notably, India-built parts from the MQB A0-IN platform are now supporting vehicle assembly operations in Vietnam.
This development highlights India’s growing role as a manufacturing and export hub within the Volkswagen Group’s global supply chain.
Leadership Insights
Andreas Dick, Škoda Auto Board Member for Production & Logistics, emphasized that this production milestone showcases India’s industrial capabilities and Škoda Auto’s long-term commitment to quality manufacturing.
Piyush Arora, Managing Director and CEO of SAVWIPL, noted that each of the 500,000 vehicles represents a strong connection with customers. He added that this achievement demonstrates the group’s engineering strength, attention to quality, and customer-centric approach.
Strong Sales and Safety Credentials
The production success aligns with strong sales performance. In March 2025, SAVWIPL recorded its highest-ever monthly domestic sales, with over 7,400 units sold. This reflects growing consumer trust in Škoda and Volkswagen models.
Additionally, the Kushaq and Slavia earned five-star safety ratings under Global NCAP’s updated crash test protocols—affirming the group’s focus on producing not only stylish and high-performing vehicles but also some of the safest cars on Indian roads.
“Make in India” and Localization Success
The milestone underlines the success of the India 2.0 strategy, which emphasizes high localization levels. Key components—including engines, transmissions, and body panels—are produced locally. This not only helps reduce costs and improve serviceability but also makes SAVWIPL less dependent on global supply disruptions.
The group’s investment in local manufacturing capabilities and skilled workforce development continues to pay dividends, further solidifying its place in India’s automotive ecosystem.
Future Plans
Looking ahead, SAVWIPL aims to build on this momentum by:
- Scaling up production to reach the next milestone of 750,000 and eventually 1 million vehicles
- Expanding its product portfolio across both Škoda and Volkswagen brands
- Investing in sustainable mobility solutions, including hybrid and electric vehicles
- Enhancing export reach across ASEAN, Middle Eastern, and Latin American markets
The company is also expected to introduce more India-specific models and focus on cost-effective innovation tailored to emerging market needs.
Conclusion
Škoda Auto Volkswagen India’s 500,000-unit production milestone marks a significant achievement—not just for the company, but for the broader Indian automotive industry. It reflects decades of engineering progress, strategic planning, and successful localization.
With a robust domestic presence, expanding exports, and a strong commitment to safety, quality, and innovation, SAVWIPL is well-positioned to lead the next phase of automotive growth in India.
As the company prepares to introduce new models and move toward greater electrification, its India journey continues to be a key pillar of its global vision.
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