Škoda Auto is celebrating 25 years in the Indian market, marking a significant milestone in its global expansion strategy. Since establishing its first plant in Chhatrapati Sambhajinagar (formerly Aurangabad) in January 2000, the Czech automaker has grown into a key player in India’s automotive sector. The company was the first Volkswagen Group brand to enter the Indian market, with the Škoda Octavia as its first locally assembled model. Over the years, India has become a strategic hub for Škoda, supporting its expansion into the ASEAN region, the Middle East, Australia, and New Zealand.
Expanding Local Production and Sales Network
Škoda Auto currently manufactures three models in India—Kushaq, Slavia, and the newly launched Kylaq compact SUV, which extends its presence in the competitive sub-4-metre segment. The company has achieved a localization level of up to 95%, ensuring cost efficiency and alignment with local market preferences.
Klaus Zellmer, CEO of Škoda Auto, highlighted India’s importance in the company’s global strategy, stating:
“India is becoming our second pillar outside Europe, leveraging its talent pool, rising consumer demand, and strategic access to international markets. Our localization strategy has been crucial, with two manufacturing plants and a 35% expansion in customer touchpoints over the past two years.”
Piyush Arora, MD & CEO of Škoda Auto Volkswagen India, reiterated the company’s commitment to the Indian market, emphasizing that Škoda is introducing models that blend global expertise with a deep understanding of local customer needs.
Strong Market Performance and Recognition
The Indian market has played a crucial role in Škoda’s global portfolio. The Kylaq compact SUV generated 10,000 orders within just ten days of its launch, reflecting the growing demand for Škoda’s locally designed vehicles. The company aims to achieve 100,000 annual car sales in India by 2026.
Škoda’s commitment to quality and innovation has earned widespread industry recognition. The Škoda Slavia was named India’s Sedan of the Year in 2022 and secured the Car of the Year 2023 title at the Acko Drive Awards.
Investments and Regional Expansion
Beyond vehicle production, India has emerged as a strategic hub for Škoda’s operations across ASEAN, the Middle East, Australia, and New Zealand. The company has invested in a Technology Centre in Pune and established a modern logistics facility in October 2023 to support component exports to Vietnam.
Sustainability Commitments
Škoda Auto has set ambitious sustainability goals for its Indian operations. The Chhatrapati Sambhajinagar plant runs entirely on green energy, while the Pune facility is on track to achieve CO2 neutrality by 2030. The Pune plant also expanded its photovoltaic system, generating up to 26.6 GWh of electricity annually, covering 30% of its electricity needs. Additionally, the 500-hectare plant site serves as a biodiversity hub, home to over 300 species of plants, trees, and animals.
With a focus on local supplier involvement and infrastructure development, Škoda Auto continues to support education and social initiatives in India.
Future Outlook
As Škoda Auto strengthens its presence in India, the company remains committed to innovation, localization, and sustainability. With a growing product lineup and an expanding dealer network, Škoda is set to play a significant role in India’s evolving automotive landscape.
