European carmaker Skoda Auto India has set an ambitious goal of selling over 100,000 cars annually by 2026—more than twice its recent yearly average. While this figure is still a fraction of Maruti Suzuki’s monthly sales, it marks a bold expansion strategy for Skoda in a market dominated by Japanese and Korean brands.

How Skoda Plans to Compete in India’s Tough Market

To achieve this milestone, Skoda and other European brands such as Volkswagen, Renault, and Citroën are:
Introducing niche, premium models with competitive pricing.
Offering advanced European technology at an accessible cost.
Focusing on younger buyers with feature-packed, stylish vehicles.

Industry expert Ravi Bhatia (Jato Dynamics) commented on this shift:

"The Indian automotive landscape is evolving. While Japanese brands maintain a strong lead, global players now have an opportunity to cater to changing consumer preferences."

Skoda’s India-Specific Strategy: The New Kylaq SUV

Skoda is custom-designing models for the Indian market, ensuring a balance between affordability and advanced features.

The upcoming sub-four-metre SUV, Kylaq, is a key launch aimed at younger buyers.

Petr Janeba, Brand Director for Skoda Auto India, stated:

“The Kylaq SUV will bring European technology at a price point that appeals to a younger, mass-market audience.”

Skoda & Volkswagen’s Goal:

• Sell 100,000 cars annually from 2026 onwards.
• It previously took Skoda two years (2022-2023) to reach this milestone.

India’s Car Market: Can Skoda Compete?

Despite Skoda’s optimism, European brands currently hold just 4.3% market share, facing intense competition from Japanese, Korean, and Indian automakers.

Market Share Breakdown (Source: Jato Dynamics)

Maruti Suzuki dominates with a wide product range, from compact cars to SUVs.
Tata Motors’ success is driven by its diverse lineup, including petrol, diesel, CNG, and electric vehicles.

What Skoda Must Do to Succeed

To compete against market leaders, Skoda must:
Launch competitively priced models that appeal to mass-market buyers.
Increase localisation to reduce costs and pricing gaps.
Expand its dealership & service network for better customer reach.
Leverage premium European features to stand out from budget-friendly Indian & Korean brands.

A Tough Road Ahead for Skoda

While Skoda’s 100,000 annual sales target signals confidence, it must strike the right balance between affordability and innovation to thrive in India’s competitive auto market.

With the Indian car market evolving rapidly, European brands have an opportunity—but only if they adapt to the unique demands of Indian consumers.