Skoda to bring hybrid cars in 3 years; to expand production capacity

Made in India compact SUV Kylaq will be exported

Skoda Auto is setting its sights on a hybrid future in India, with plans to introduce such variants in upcoming models, including the next-generation Kushaq, expected in three years, a senior company official said here.

 

It already has the technology for hybrid powertrains. 

 

Although the company has the technology ready for hybrid powertrains, it is awaiting consumer demand and a clearer regulatory landscape across states to launch hybrid models.

 

Speaking to reporters on the sideline of the Kylaq launch, Petr Janeba, brand director, Skoda Auto, said it plans to bring a hybrid variant of the next generation Kushaq in three years. 

 

 

“If customer demand picks up for hybrid vehicles, then we will definitely look at bringing in a hybrid variant of the Kylaq too,” he added. 

 

This comes alongside the launch of the company's new compact SUV, the Kylaq, priced competitively at Rs 7.89 lakh (ex-showroom).

 

Skoda plans to capture a share of the booming sub-four-metre SUV segment which accounts for about 30 per cent of SUV sales in India.

 

SUVs as such constitute around 50 per cent of the total passenger vehicle sales in the country. 

 

The Kylaq will face competition from rivals in the compact SUV segment, including the Hyundai Venue, priced between Rs 7.94 lakh and Rs 13.53 lakh, and the Kia Sonet, ranging from Rs 7.99 lakh to Rs 15.77 lakh.

 

In the fray, will also be the Mahindra XUV300, starting at Rs 7.79 lakh and going up to Rs 15.49 lakh and the Maruti Fronx, with a base price of Rs 7.51 lakh. 

 

“With Kylaq, we're nearly tripling our market potential in India by expanding our offerings in segments that address over 60 per cent of new car buyers,” Janeba said. 

 

Currently, the company’s portfolio, comprising the Kushaq, Slavia, and Kodiaq, covers just 27 per cent of potential buyers.

 

“With this launch, we’re targeting the sub-four-metre SUV segment which has seen significant growth in India. This is in line with global trends. Out of nearly 4 million passenger vehicles sold here, this segment accounts for about 30 per cent of the overall SUV market. It gives us a golden opportunity to cater to customers seeking value and safety,” said Piyush Arora, managing director (MD) & chief executive officer (CEO), Skoda Auto Volkswagen India. 

 

Kylaq is built on the India 2.0 platform, which includes Kushaq and Slavia. The SUV boasts over 90 per cent localisation for both domestic sales and export opportunities.

 

With this launch, the Czech automaker is targeting to sell 100,000 units annually in India. To meet this demand, the company is ramping up its production capacity by 30 per cent, increasing from 190,000 units to 255,000 units per year.

 

To support its sales targets, Skoda is expanding its dealership network in India. It aims to increase touchpoints from the current 260 to 350 by mid-2025, reaching out to Tier-II and III cities in addition to established markets.

 

In addition to domestic sales, the Kylaq will also cater to international markets, including Mexico, South Africa, and West Asia.

 

Additionally, it will be exporting Kylaq components to markets like Vietnam for local assembly.

 

This strategy highlights Skoda's commitment to global reach, building upon the success of the India 2.0 platform for international sales.

 

At present, around 30 per cent of Skoda’s production in India is exported to 40 countries.