- During the recent financial year results announcement, Skoda Auto reiterated on India’s key role in its internationalisation strategy, starting with exporting CKD (Completely Knocked Down) kits from India to Vietnam, which Skoda calls as a strategic gateway to the broader ASEAN region
The Czech carmaker, Skoda Auto has reiterated India’s key role in its internationalisation strategy. The company recently announced its calendar year 2024 results. During the announcement, the carmaker stated that India remains a key pillar of Skoda Auto’s internationalisation strategy and a future export hub.
In 2023 Skoda Auto announced that India will act as an export hub for the company for its operations in ASEAN and the Middle East region. While the company had started its operation in Vietnam, the brand’s strategic gateway to the broader ASEAN region, in 2023 with CBU models from India, the plan now is to begin vehicle assembly in 2025 at the newly constructed plant in Quang Ninh province.
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Production will initially focus on the Kushaq, with the Slavia to follow, leveraging synergies with Skoda’s manufacturing network in India through imported CKD (Completely Knocked Down) kits. This is where India will emerge as the brand’s export hub. Skoda’s international expansion is also gaining momentum in other regions. In Kazakhstan, the company successfully re-entered the market, delivering over 1,400 vehicles to customers last year.
Skoda Auto’s increased commitment to India
The Skoda Kylaq was launched in India earlier this year. The Kylaq is the biggest bet of the carmaker in India so far. The company stated that entering the highly competitive sub-four-metre segment, which accounts for nearly 50 per cent of car sales in India, the Kylaq is set to play a crucial role in Škoda’s ambition to sell 100,000 vehicles in the Indian market by 2026.
The Kylaq is the third product under Skoda’s India 2.0 project. Piyush Arora, in an earlier conversation with HT Auto, stated that the Kushaq and Slavia have so far enabled the company to address almost 30 per cent of the Indian passenger vehicle market. With the introduction of Kylaq, the automaker plans to further expand its reach and deepen its penetration in this segment.
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While the Kushaq and Slavia provided the brand with an entry to the Tier-1 cities, the Kylaq will provide the brand with a huge opportunity to enter the markets of Tier-2 and Tier-3 cities. Arora emphasised that the synergistic effect of the launch of the Kylaq along with reinforcement of the dealership presence in these areas will facilitate access to the new model as well as boost sales of the other India 2.0 products.
The Kylaq will serve as a platform to highlight Skoda’s prowess with its premium products, including the soon-to-be-launched Kodiaq, to Tier-2 cities. This move reflects Skoda’s attempt to expand its presence and strengthen its brand presence in various segments of the Indian market, Arora explained.
Skoda Auto’s performance in 2024
Skoda Auto Group had its most successful financial year in 2024, achieving record sales revenue of around $30.364 billion (€27.8 billion), a 4.7 per cent increase from the previous year. Operating profit surged by 30 per cent to around $2.51 billion (€2.3 billion), while net cash flow more than doubled, surpassing $2.18 billion approx (€2 billion) which is a 116.2 per cent YoY increase. The company’s return on sales also climbed to 8.3 per cent, showcasing its financial strength and resilience.
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Skoda Auto delivered 926,600 vehicles worldwide in 2024, marking a 6.9 per cent year-over-year increase. The Skoda Octavia remained the brand’s top-selling model, with 215,700 units sold—a 12.4 per cent rise. The company also saw a sharp increase in deliveries across Europe, where it outpaced the overall market and climbed to the fourth-best-selling carmaker position, up from seventh in 2023.
Looking ahead, Skoda is positioned for continued success with its most diverse and modern product lineup to date. Offering models across all drive types, the company is expanding its electric vehicle portfolio with the all-new Elroq, an all-electric compact SUV, and the recently launched next-generation Enyaq. With a focus on innovation and market expansion, Skoda Auto is aims to build on its strong momentum in the coming years.
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First Published Date: 16 Mar 2025, 16:15 PM IST
