Skoda Aims to Achieve Annual Sales of 100,000 Units by 2026 with Its New Compact suv

Skoda Auto has greenlit the next phase of its investment in India, earmarking funds for the development of an upcoming compact SUV and battery electric vehicles, according to Klaus Zellmer, the company’s CEO. This new investment initiative not only entails a 30 percent expansion of production capacity but also broadens the brand’s market reach to encompass nearly 50-60 percent of the rapidly expanding passenger vehicle market in the country.

The fresh investment will be allocated towards the development of the compact SUV and electric vehicles (EVs).

Skoda India aims to capture a 5 percent market share by 2030.

Half of the Skodas produced outside of the Czech Republic originate from India.

With the introduction of the compact SUV, Skoda Auto has set a target of selling 100,000 vehicles annually by 2026 and aims to achieve a 5 percent market share by the end of the decade. The all-new compact SUV, designed for the Indian market, will be launched within a year and will be based on the MQB A0-IN platform, which the company officials assert is tailored for India and marks the beginning of a new chapter.

Initiating its “new era” in the country, Zellmer emphasizes that India is “a key contributor” to the brand’s global growth and the most “promising growth” market for the years ahead. “India holds significant importance for Skoda. We have outlined a comprehensive strategy for future investments to enhance our existing product range and introduce new products in both traditional internal combustion engine (ICE) and battery electric options. We have a robust plan to expand the Skoda brand in India, targeting a market share of approximately 5 percent by 2030.”

The CEO emphasizes that reinforcing operations in India also bolsters the brand’s broader internationalization potential. He notes that around 50 percent of Skoda cars manufactured outside of the Czech Republic are produced in India, and the company’s export strategy for India-developed Skoda models continues to gain momentum.

“We are continuously enhancing our capacity to swiftly respond to the global market. India’s role is pivotal. While Europe remains important as our home market, our strategic focus is on cultivating a new international foundation to establish a strong global presence,” elaborated the CEO.

Skoda Auto’s international sales and EV strategy

Globally, Skoda achieved sales of over 866,000 cars, marking an 18.5 percent increase from the previous year, nearly double the industry growth rate across global markets of 9.5 percent. Throughout the year, the company unveiled its EV strategy, introducing six new all-electric models in the coming years, in addition to launching several new generations and updates to its ICE range.

Zellmer highlighted that its electric Enyaq iV serves as the cornerstone of its global EV strategy and is currently undergoing testing in India. The Enyaq has already proven its mettle in a fiercely competitive EV market in Europe and emerged as the best-selling fully electric car in Germany.