With Kylaq, we aim to achieve annual sales of 100,000 cars: Petr Janeba, Skoda India
Historically perceived as a niche European brand, Škoda Auto India now aspires to become a high-volume player in India with its first compact SUV model "Kylaq" to be launched in February 2025. The Czech-headquartered carmaker views India as its second most important market outside Europe. Škoda Auto India aims to sell 100,000 cars annually by 2025, marking its 25th anniversary in India, according to Petr Janeba, Brand Director, Škoda Auto India. Currently, the company sells around 40,000 vehicles a year and holds a market share of less than one per cent. In an exclusive interview with e4m on Wednesday, Janeba explains, “Our focus is on the sub-4 meter segment which holds the highest sales potential, making it essential for Škoda to capture significant market share. The all-new compact SUV represents our boldest effort to penetrate this segment with a locally developed and named car. Kylaq’s price range will be at par with other compact SUVs made by Indian carmakers.” Janeba notes that Škoda’s manufacturing plant in Pune, Maharashtra, can produce over 250,000 cars annually, eliminating the need for further production expansion. “We also plan to increase our advertising spend by 50 per cent in the current fiscal year to generate excitement around the new model. To effectively reach potential customers, we will utilise television, outdoor, digital, and other platforms,” he noted. In FY24, the Skoda Auto Volkswagen India Group, which includes five brands in India—Skoda, Volkswagen, Audi, Porsche, and Lamborghini—spent Rs 676 crore on advertising and promotion in India, marking a 13 per cent increase from Rs 598 crore in the previous year, according to its financial report from Tofler. Skoda’s ad spend could not be immediately obtained. The group has been looking for an Indian partner for its next phase of investment in the country. Kylaq an Indian car The oncoming vehicle has been named "Kylaq" through an interesting nationwide campaign rolled out in February involving users. Janeba says, “The campaign resulted in over 2,00,000 entries with over 24,000 unique names. The winning name was chosen through a voting process among netizens. Kylaq is derived from the Sanskrit word for crystal, reflecting both the vehicle’s pristine qualities and inspiration from Mt. Kailash.” Janeba emphasizes that the Kylaq is an “Indian car,” designed to significantly boost sales, especially in smaller cities and rural areas where Škoda has had a limited presence. “The compact SUV is a strategic move to expand our reach and strengthen our network in India. Currently, our customer base tends to be older and more solid compared to the younger demographics of the Indian market. With the new SUV, we hope to appeal to a broader audience, including those in tier 3 and tier 4 cities, where we see substantial growth potential,” Janeba explained. On what makes it an Indian car and what sets this new SUV apart from competitors, Janeba noted, "This is the car with the highest local content we've ever produced in India. We have integrated over 400 new suppliers specifically for this model. The car is designed and developed locally, with a platform based on our Kushaq model, but with significant local input." The carmaker hopes to sell 90 per cent of the Kylaq within India. The rest will be exported. With less than one per cent market share in 24 years in India, Škoda's journey has been a blend of challenges and opportunities, Janeba quips, adding, “Expanding our network and introducing locally relevant models are crucial for our future growth. We are committed to delivering high-quality products and services while adapting to the dynamic market landscape.” Price at par with competitors Janeba didn’t disclose the price range of the upcoming car but promised that it would be at par with other market players. “The compact SUV segment is very crowded, with major players like Suzuki, Hyundai, and Tata already established. However, our approach focuses on delivering European technology and quality in a local context. We are committed to being competitive on price and after-sales service while maintaining our premium positioning,” he said. “The market landscape has changed significantly over the years. There is still potential for expansion in the compact SUV segment, particularly in smaller cities and rural areas. Our strategy with the new SUV is designed to tap into this potential. Despite having a market share of less than 1per cent currently, we see a strong opportunity to grow, especially with a more localised approach”, Janeba shared.
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