Photo Credit: Skoda India
Škoda Auto India has recorded an impressive 134% year-on-year surge in its first-half 2025 sales, delivering 36,194 units—its highest-ever figure for a six-month period. This milestone has elevated Škoda into the top seven automotive brands in India, marking a significant leap in brand performance and market presence.
What Fuelled the Growth?
Kylaq: The New SUV Sensation
The newly launched sub‑4‑metre Kylaq SUV has emerged as a game-changer. Designed for Indian consumers and based on the MQB‑A0 IN platform, the Kylaq has resonated strongly across Tier 1 to Tier 3 cities. With over 10,000 bookings within ten days of launch and consistent monthly sales of around 5,000 to 6,000 units, it played a pivotal role in Škoda’s record-breaking performance.
Well-Balanced Product Portfolio
Škoda’s lineup, including the Kylaq, Kushaq, Slavia, and the premium Kodiaq SUV, offers a healthy mix of value and luxury. While the Slavia sedan continued to perform steadily, the latest Kodiaq upgrade added to the brand’s appeal among premium SUV buyers.
Expanding Network and Customer-Focused Services
Škoda expanded its dealer network from 120 touchpoints in 2021 to over 295 by mid-2025, with a goal of reaching 350 by year-end. The brand also strengthened its after-sales ecosystem, introducing improved warranty packages and a complimentary one-year maintenance program to drive customer satisfaction.
Sales Performance at a Glance
- 36,194 units sold in H1 2025 — the highest half-yearly figure in Škoda India’s history
- 134% growth over H1 2024, when sales stood at 15,524 units
- Surpassed previous record of 28,899 units sold in H1 2022
- Significant rise in sales from both urban and rural markets
Škoda Auto India’s Brand Director, Ashish Gupta, stated that this growth reflects widespread consumer trust and market acceptance. He noted the Kylaq’s importance in democratizing Škoda’s reach, aligning with the company’s broader mission of accessibility and expansion.
Broader Industry Context
European Automakers in India
Škoda’s rise comes amid broader challenges for European automakers in India. Brands like Renault and Volkswagen have struggled with pricing strategies in a market dominated by domestic and Asian manufacturers. Škoda’s tailored approach and aggressive market positioning are helping it buck that trend.
Investment Despite Legal Challenges
Despite facing a substantial tax demand of nearly $1.4 billion (potentially rising to $2.8 billion), Škoda continues to invest in India’s long-term market potential. The company is committed to EV production and local R&D expansion, signaling confidence despite regulatory hurdles.
Future Growth Strategy
Škoda has received approval for a ₹10,000 crore investment under the Volkswagen Group’s India 3.0 strategy. This includes the launch of a new small SUV later in 2025 and further progress in EV localization. These steps aim to solidify Škoda’s role as a mainstream player in the Indian market.
Key Areas to Watch
- Upcoming Compact SUV – A new budget-friendly SUV launch later this year is expected to expand Škoda’s reach into the mass market.
- Electric Vehicle Plans – Investments into EV infrastructure and local production are crucial for the brand’s sustainability goals.
- Regulatory Resolution – The pending tax case could influence Škoda’s long-term investment decisions and overall growth strategy.
- Dealer Network Growth – Reaching 350 dealerships will ensure deeper penetration in emerging and semi-urban markets.
Conclusion
Škoda Auto India’s record-breaking H1 2025 performance marks a defining chapter in its journey. Once a niche European automaker, Škoda is now positioning itself as a serious mainstream contender. With the Kylaq leading the charge, a growing customer base, and a commitment to innovation and accessibility, Škoda is poised to reshape its future in one of the world’s most competitive auto markets. The remainder of 2025 will be critical as it prepares for a new launch and navigates a transforming mobility landscape in India.
