“Building relevance, trust and scale: Skoda Auto India’s next growth chapter”

After a record-breaking year for Skoda Auto India, the spotlight is firmly on what comes next. With a refreshed product portfolio, rapid network expansion, improving dealer trust, and a renewed focus on relevance, differentiation and customer-centric growth, the brand is positioning itself for its next phase in one of the world’s most competitive car markets. From volumes and service experience to powertrain strategy, EVs, CNG, diesel and the philosophy of democratizing technology across segments, Skoda’s roadmap touches almost every critical pressure point of the Indian auto industry today. evo India editor Aatish Mishra sat down with Ashish Gupta, Brand director to understand how Skoda plans to build on its strongest year yet, address long-standing challenges, and chart a sustainable growth strategy for the future.

How do you build on Skoda’s best year yet?

“Growth for us is not just about volumes. It is also about getting closer to customers, becoming more relevant to more people and, most importantly, building trust. That is how I define growth going forward. Of course, we also plan to grow volumes because the market itself is showing strong traction. Post-GST, the last quarter grew almost 10–12 per cent and that momentum is continuing. Structurally, GST should add another 4–5 per cent growth to the market, and the segments we operate in are among the fastest growing.”

Why are you confident about volume growth next year?

“We are present in the right segments. Sub-4m SUVs grew 15–16 per cent last quarter, the mid-size SUV segment grew about 12 per cent and even the A-segment saw strong growth after GST rationalisation. We also have nearly 20 per cent of our network that is new and came online only in the last quarter, which will start contributing fully. This will be the first full year of Kylaq sales, the refreshed Kushaq is now far more competitive, and the Slavia upgrade is coming later in the year. Along with network expansion from 80 to 90 per cent market coverage and a loyal base of nearly 5 lakh customers, these are our key growth levers.”

Dealership trust has been a big concern. How is that improving?

“It is always a work in progress. No brand can claim a perfect network, but we have come a long way. Our internal customer satisfaction scores have improved by 10–12 per cent. Positive sentiment on social media is above 95 per cent, which is a key KPI for us. We have rationalised the network over the last two to three years, removed habitual offenders and brought in new, quality-focused partners. Through our ‘Best Dealer in Town’ programme, we found that in nearly 12 cities, Škoda dealers are rated number one on Google compared to competitors. There is still work to do, but the progress has been tremendous.”

Why was dealership performance such a big issue earlier?

“Part of it was our portfolio. We were largely selling imported cars, servicing was complex, skilled manpower availability was limited and parts supply depended on overseas logistics. Today, with a largely local portfolio, simplified service procedures and a strong focus on cost of ownership, our cost of ownership is lower than many brands operating in lower segments. Some of the biggest barriers to entering the Skoda brand have been addressed.”

What impacted Kushaq sales earlier, and how does the update help?

“It was a combination of factors. The pandemic impacted sales, the segment is hyper-competitive, and frankly, Kushaq was an ageing product that needed an update. When a new and glamorous product comes in, dealer focus can shift as well. Now, with a major upgrade bringing features the market was demanding and a more stable, focused network, it will definitely help. Slavia, on the other hand, is doing very well and is among the top two in its segment with over 25 per cent share. In the last quarter, demand was 25 per cent higher than what we could supply.”

How do you view premiumisation and the luxury space?

“Our ICE portfolio tops out at the Kodiaq, so moving into core luxury price bands is not aligned with brand positioning. However, within this space, we can premiumise further. The Kodiaq RS will be coming to India, strengthening our RS badge. The bigger opportunity in higher price bands will come with our global BEVs, but only when policy uncertainty settles.”

What is the plan for EVs like the Enyaq?

“We were ready three years ago and had already tested the Enyaq for India. But policy uncertainty, FTA discussions, geopolitics and EV policy made us pause. I don’t want to repeat past mistakes. We will bring global BEVs through the FBU route only when there is more clarity. Any EV introduction also has to fit seamlessly into our larger EV strategy, which we have defined internally.”

Is diesel completely off the table?

“No, diesel is never off the table. I might even surprise you in 2026. There is clearly a wide space in the Indian market for it. This segment exists because aspirations have grown and premiumisation has happened. As markets move up the value chain, these spaces develop and eventually become hyper-competitive.”

What are the three pillars driving Skoda’s strategy?

“Relevance, differentiation and trust. Relevance comes from adding value to the product. Our upgrades across Kylaq and Kushaq focus on democratizing technology - automatics at unheard-of price points, sunroofs from base variants, auto-dimming IRVMs, rear wipers, defoggers and standard alloy wheels. This not only adds value but also differentiates us, because no one else offers this level of equipment from the base variant.”

What are your sales targets for Kushaq?

“You never ask a sales guy his target. But without numbers, I want to double my segment share. Kushaq is positioned as an accessible, turbo-petrol offering. That is a conscious choice, especially in a segment fragmented by EVs and hybrids.”

Why the move to an 8-speed automatic?

“It’s not about emissions. It’s about our ‘real automatic’ strategy. While the market is roughly 65 per cent manual and 35 per cent automatic, our mix is the opposite. Customers value our torque converters and DSGs. Moving from a 6-speed to an 8-speed gives us a first- and best-in-segment differentiator. Fuel efficiency figures will be revealed closer to the price announcement.”

Will Skoda stick only to turbo-petrol powertrains?

“I will never say ‘only’, because such statements come back to bite you. But petrol turbo was a conscious choice, and our focus is on maximising that decision.”

Can Skoda maintain its jump from 11th to 7th position in the market?

“Which self-respecting brand head would say otherwise? That is the objective. But it’s not entirely in my hands - competition matters too.”

Is feature loading creating overlap between Kylaq and Kushaq?

“No. We haven’t even revealed prices yet. The philosophy of democratizing technology applies across the portfolio. Kylaq Classic Plus also gets a six-speed automatic, sunroof and key features. Value addition is across products, while keeping them accessible.”

What about CNG for Kylaq?

“It is a big opportunity. Nearly 20 per cent of the segment is CNG. Ideally, we want a factory-fitted solution, but even a manufacturer-backed dealer fitment works if reliability is ensured. CNG on a TSI is more complex than on an MPI engine, but we are working on it.”

How is Skoda preparing service capacity for Kylaq volumes?

“We have added almost 40 new service centres. Any centre that reaches 80 per cent capacity is expanded. We have also introduced four free services across the portfolio, including new check-ins at 1,000km and 7,500km. We are fully prepared from a service capacity standpoint.”

Why no clear visual differentiation between 1.0 and 1.5 variants?

“We have done that. Monte Carlo is now more broad-based, with the same design cues available across price points. That is our brand strategy.”

Will Slavia get a comprehensive update?

“If I tell you now, what will you do at the event? You’ll see it tomorrow.”

Any EV launches this year?

“The only EVs possible this year would be FBUs, and given the policy uncertainty, I don’t want to take that risk. The Enyaq is still there and approved, but timing depends on clarity.”