Czech automaker Skoda Kylaq is set to create a big bang in India’s high-volume sub-4 meter SUV segment. The company currently sells four models in the country. It will launch the all-new compact SUV Kylaq in the market early next year. It will compete with famous rivals like the Maruti Suzuki Brezza and Hyundai Venue. And Kia Sonet, which taps the segment booming by leaps in recent years. Skoda is coming into this space to gain an increased market share in India. Since the sub-4-meter SUV category accounts for nearly 30% of all overall passenger vehicle sales.
Skoda Kylaq: Investment and Expansion
Skoda has spent an estimated 250 million euros to assist Kylaq’s entry into the Indian market. This has also boosted the production capability by 30% at its Chakan plant near Pune, and it goes along with Skoda’s overall plans to not only supply the local Indian market but eventually export Kylaq into the Asia-Pacific region as well.
Thanks to some very positive government policies and a support structure that the GST holds, the sub-4-meter SUV segment has witnessed a major growth spurt. Skoda Auto India Brand Director Petr Janeba said, “The Kylaq segment is twice the size of our current trading segments. That is a real opportunity for us.” He further added, “I would say the volumes, which the Kylaq is going to give us, might just double our current sales.”
With the Kylaq, Skoda is ready to hope for more sales and service infrastructure across India. At the same time, it plans to increase the number of its sales outlets by 25% from the current 200 outlets to over 250 by that time. Simultaneously, the company is also looking to expand its total sales and service network to around 350 touchpoints by mid-next year, expanding this number from 260 outlets. The development in this area will help the company reach out to more customers, and there is a special thrust towards Tier 3 and Tier 4 cities, thereby increasing the footprints of the automobile major in the country.
Export Plans and Strategic Importance of Skoda Kylaq
The Kylaq has been conceptualized keeping in view the future trends and aspirations of Indian customers, so to speak,” said Jan Bures, Skoda Auto Volkswagen India’s Executive Director of Sales, Marketing and Digital. “With nearly 30 percent of the Indian passenger car market share falling under the sub-4 meter category, it is a critical area for Skoda to target.”. The Kylaq will attract new customers to the Skoda fold, especially in the smaller cities and towns. Further, exports will open doors to newer markets in the Asia-Pacific region.
Leveling advantage with the MQB-A0-IN Platform
Kylaq is on Skoda’s MQB-A0-IN platform. The latter has been readied using an in-house design specifically for Indian requirements. Other variants of Skoda models, such as Kushaq and Slavia, are based on this MQB platform. Have had pretty good responses from Indian customers. With a solid foundation, the Kylaq should thus be able to command the essentials of Indian buyers while presenting a pretty attractive offer in the sub-4 meter SUV space.
Skoda’s Market Presence and Future Prospects
Skoda Auto has firmly established its presence in the country’s automotive landscape after completing 24 years in India. The company has sold more than one lakh units in India alone over the last two years, proving its growing presence. It will look to expand success with the newly launched Kylaq.
The Kylaq, by Skoda, is a significant leap in the company’s growth strategy as far as its Indian growth strategy goes. It has made a solid investment in the market, expanded its network, and made its clear vision for the future so that Skoda can storm one of India’s most competitive and high-volume markets.
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