Skoda hitches a ride on mid-size SUV Kushaq to drive up India volumes

Czech carmaker eyes 6x jump in volumes by 2025

Skoda Auto Volkswagen (VW) India is hitching a ride on the Kushaq — a mid-sized sport utility vehicle (SUV) that made a global debut on Thursday — to drive volumes in India. This is a first off the India 2.0 strategy the company had announced in 2018.
 
With a few more mass-market line-ups of sedans and SUVs slated to be introduced over the next four years as part of its India strategy, Skoda — the leading brand of VW Group in India — is looking to inc­rease the annual run rate of volumes to 100,000 units by 2025. This is also the year when India will become the top five markets for Skoda globally. This is more than a 6x increase from the current annual run rate.

 
The Kushaq is the first offering by the Czech carmaker in the mass segment. It also marks a new beginning for the 20-year-old brand in India, said Gurpratap S Boparai, managing director, Skoda Auto VW India.  It scripts a significant shift in the brand’s positioning in the world’s fourth-largest market, where it has traditionally been perceived as being ‘affordable’.
 

“So far, we haven’t really go­ne into the affordable segment. This will be our maiden foray into the volume segment. A lot more India inputs have gone into the car — be it de­si­gn, colour or infotainment,” said Boparai, pointing out that since the firm kick-started the India 2.0 project, effort has go­ne into reducing the cost of ownership, which had been a sore point among Skoda owners.

 
Derived from the Sanskrit word kushak connoting king or perfection, the Kushaq will rival the Hyundai Creta and Kia Seltos, among others. Skoda will announce the price of the model and commence bookings from June. It will start delivering the model from July. 
 
With the Kushaq and a sedan the company plans to roll out at the end of this year, Skoda is looking to more than double its India sales in 2022, said Zac Hollis, director-sales, service and marketing at Skoda Auto India. Hollis said the company expects the mid-sized SUV market — where the competition is lesser than the compact SUV — to grow at an exponential 80-90 per cent over eight to nine years. “It may even double, provided the overall market condition remains favourable.”

   
Albeit on a low base, the value luxury brand of VW Group — that has been a fringe player in India’s competitive car market — is looking to double its sales in 2021, compared to the numbers in 2019-2020.  It despatched 14,444 cars during a pandemic-hit year. 
 
While new models will add to the excitement and reel in buyers, the climb-up for VW Group, where it has struggled so far, will be an uphill task. Increasing competition from Korean, Indian and other European players will make it tough for the firm to capture the market. “Eventually, it will depend upon the pricing and the overall proposition it offers,” said an analyst.