Škoda Auto India (SAI) is embarking on a quest to find the perfect name for its upcoming compact SUV, marking its third major product launch following the successful Kushaq and the Slavia. To engage users, customers, and enthusiasts in this endeavour, SAI has initiated the #NameYourSkoda campaign, inviting entries from across India. The campaign allows participants to suggest names for the all-new compact SUV from a curated list of options, including KYLAQ, KARIQ, KYMAQ, KYROQ, and KWIQ.
Genesis Of Compact SUV
Approximately a year ago, SAI announced its intention to introduce an all-new compact SUV slated for debut in India by the end of 2024. However, the launch has been rescheduled to the first half of 2025 due to certain circumstances. SAI anticipates this new offering will contribute approximately 50% of its overall sales volume in 2026.
Central to Škoda Auto India's strategy is the MQB-A0-IN platform, which made its debut with the Škoda Kushaq in 2021. Developed collaboratively by teams in India and the Czech Republic, this platform comes with high localisation levels, low cost of ownership, and rapid turnaround times. Notably, it represents the first platform developed by the company outside of Europe, tailor-made specifically for the Indian market.
The forthcoming compact SUV will mark Škoda's return to the sub-4-metre segment since the discontinuation of the Fabia in 2013. Based on the MQB-A0 IN platform, which also underpins the Slavia, as well as VW's Taigun and Virtus, this compact SUV will share lineage with its successful predecessors while offering a fresh and dynamic driving experience to Škoda enthusiasts and new customers alike.
Key Drivers To Enter Compact SUV Segment
Offering insights into SAI’s foray into the compact SUV segment, Piyush Arora, Managing Director and CEO of Škoda Auto Volkswagen India (SAVWIPL), told Mobility Outlook that “the SUV body style is the fastest growing segment in India and with highest market share and for us it is normal to expand our portfolio in this direction.”
In navigating a fiercely competitive market that constitutes one-fourth of the total industry volume, the upcoming compact SUV from SAI is poised to take on formidable rivals such as the Maruti Suzuki Brezza, Tata Nexon, Hyundai Venue, and Kia Sonnet. Despite the intense competition, Arora asserts that the brand's commitment to safety and driving dynamics will be pivotal in setting the compact SUV apart.
While acknowledging the need for competitive pricing in the market, Arora emphasises that the company's core values will remain integral to the new offering. The competitive pricing of the upcoming compact SUV is facilitated by its eligibility for the lower 28% GST slab, attributed to its classification as a small car. Falling within the small cars bracket, the SUV could boast a length under four meters and be equipped with a 1.1-litre petrol engine. Moreover, the strategic move towards standardisation, as evident in the India 2.0 vehicles from Skoda and VW brands, is anticipated to play a significant role in cost efficiency. Also, the company anticipates increased revenue streams through exports, further solidifying its financial standing.
Highlighting the prowess of Škoda Auto's R&D expertise in India, Arora underscores the company's success in incorporating highly localised parts and components across its entire range. With the upcoming compact SUV, this localisation strategy will be further reinforced, aiming to develop a robust local supplier base capable of delivering globally standardised parts at competitive prices, thereby strengthening the brand's foothold in the Indian automotive landscape.
Critical Components Gor Achieving Success
To ensure the success of the new SUV, the company needs to consider various factors, including its sales outlets. Petr Janeba, Brand Director at SAI, highlighted that the current 260 touchpoints will be expanded by an additional 20 before the end of CY25, enabling the market penetration of the new SUV. He envisions introducing the new SUV will propel the company to exceed the 100,000 sales mark by 2026. Recognising the need for continual expansion, he emphasised a responsible approach to network partners' profitability. Janeba affirmed, 'While there's always room for growth, we remain committed to ensuring our network partners' profitability and will explore innovative strategies to achieve our goals.'
Earlier, Klaus Zellmer, CEO of Škoda Auto, emphasized India's significance for global growth, serving as a key market and a strategic base for development and manufacturing. He expressed confidence in the expanding Škoda portfolio contributing to the goal of achieving a 5% market share for the Volkswagen family of brands in India by 2030.
Dr Johannes Neft, Board Member for Technical Development at Škoda Auto, highlighted the exceptional technical capabilities of the India-specific MQB-A0-IN platform and its versatility and global readiness. The upcoming compact SUV will also utilise this platform, ensuring superior driving dynamics, integral safety, and proven quality.
Martin Jahn, Board Member for Sales & Marketing at Škoda Auto, highlighted the brand's global progress with an 18.5% growth in 2023 compared to the previous year. Emphasising India's pivotal role in their growth strategy, he noted surpassing 100,000 sales in the last two years, credited to the locally developed Kushaq and Slavia models.
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