Škoda Auto India Plans Expansion into ₹25-40 Lakh Premium Car Segment

Škoda Auto India has identified a significant market opportunity in the ₹25 lakh to ₹40 lakh price bracket, terming it a "white space" with insufficient offerings currently. Brand Director Ashish Gupta anticipates a market shift, similar to the past decade's move away from sub-₹10 lakh cars, towards higher-value segments. While importing fully built units (CBUs) of passenger vehicles below ₹45 lakh is impacted by the Euro to rupee exchange rate, making it a niche business, Škoda remains committed to India. The company possesses manufacturing capacity for the next few years, sufficient for 2.50 lakh units annually. Škoda plans to introduce future models, including electric and hybrid powertrains, based on market demand and evolving economic and demographic trends. Globally, India is recognized as Škoda's most important market outside Europe, necessitating further investment in new products to maintain relevance. The company has reported strong sales performance in 2025, with 61,607 cars sold from January to October and achieving its highest-ever monthly sales of 8,252 units in October. The Kylaq SUV has surpassed 34,500 units in sales, and limited editions of Kushaq, Slavia, and Kylaq were launched to commemorate 25 years in India, alongside the sold-out Octavia RS. Impact: This strategic move by Škoda Auto India aims to capture a growing segment of the premium car market, potentially intensifying competition for other manufacturers and influencing future product development strategies across the automotive industry in India. It signals a long-term commitment to the Indian market by a major global player. Rating: 7/10

Difficult Terms: White Space: An untapped market segment or opportunity where there are few or no existing products or services. CBU (Completely Built Unit): A finished vehicle that is imported into a country directly from the manufacturer's overseas plant. Powertrain: The system that generates power and delivers it to the road, typically comprising the engine, transmission, and drivetrain.