Škoda Auto marks 25 years in India: From rented facilities to a key international market

Škoda Auto, the first Volkswagen Group brand in India, laid the foundation for its Chhatrapati Sambhajinagar plant in January 2000. Since 2018, Škoda has led all Group activities in the region. The current model lineup includes three vehicles developed specifically for the Indian market, including the recently launched Kylaq compact SUV, which will help meet the brand’s annual sales target of 100,000 vehicles by 2026.

Škoda Auto made its debut in the vibrant Indian market 25 years ago. In January 2000, the Czech carmaker laid the foundation for its plant in Chhatrapati Sambhajinagar (formerly Aurangabad until 2022), becoming the first Volkswagen Group brand to enter the local market. The Škoda Octavia was the first model to be assembled locally.

Since then, India has become a key market in Škoda’s international expansion, enabling the company to tap into growth opportunities in the ASEAN region, the Middle East, Australia, and New Zealand. Since 2018, Škoda Auto has been leading Volkswagen Group’s regional activities. Today, the brand locally develops and manufactures three models tailored for the Indian market on the MQB A0–IN platform: the Kushaq, the Slavia, and the latest Kylaq compact SUV, which extends its reach into the popular sub-4-meter segment.

Klaus Zellmer, CEO of Škoda Auto: “We have built on 25 years of experience in India to make this thriving market the cornerstone of our international growth strategy. With its tremendous talent pool, growing consumer demand, and access to other markets, India is becoming our second pillar outside Europe and helping leverage further sales potential in ASEAN, the Middle East, and the Indo-Pacific region. Škoda has been a notable brand in India since we entered the market with the Octavia in 2001. We now produce in two plants. We have launched three all-new models specifically for India, achieving localization of up to 95 per cent: the Škoda Kushaq, Slavia, and just recently the Kylaq compact SUV, which complement the Octavia and Superb we also sell through a growing dealer network. In the last two years, we have increased customer touchpoints across the country by 35%. India also contributes to the global sustainability goals of Škoda Auto. One plant already runs entirely on green energy, while the plant in Pune expanded its photovoltaic system to deliver up to 30% of its electricity needs. I want to thank all our Indian colleagues for helping powerthe next stage of our growth, and especially our customers for their trust in our products. With this passion, we can achieve even greater things in the next 25 years!”

Piyush Arora, MD & CEO of Škoda Auto Volkswagen India: “Škoda was the first brand to establish Volkswagen Group’s presence in India, setting up its first plant in Chhatrapati Sambhajinagar back in January 2000. As Škoda celebrates 25 years in the country, the Group’s focus on the Indian market continues to strengthen. With evolving consumer preferences, we are introducing products that combine the Group’s global expertise with a deep understanding of the Indian market. Today, our model lineup features advanced vehicles designed and built specifically for India, including the newly unveiled compact SUV, Škoda Kylaq.

This dynamic market has become the foundation of Skoda’s internationalization strategy, driven by our commitment to innovation, safety, sustainability, and customer-centric solutions. We are dedicated to enhancing our manufacturing capabilities & sales touchpoints and advancing our sustainability initiatives to deliver long-term value to our customers, employees, and communities.”

Škoda Auto’s journey in India began with the first-generation Octavia, assembled in rented facilities, followed by the introduction of models like the Fabia, Rapid, Superb, and Kodiaq. A significant milestone came in 2018 when Škoda was tasked with leading all Volkswagen Group activities in India and developing the MQB-A0-IN platform specifically for the market. This led to the production of the Kushaq in 2021 and the Slavia sedan the following year, both manufactured in Pune. The latest addition, the Kylaq SUV, entered the popular sub-4-metre segment, receiving 10,000 orders within 10 days of its launch.

Škoda’s vehicles have earned strong customer interest and numerous awards, including the Škoda Slavia being named India’s Sedan of the Year 2022 and Car of the Year 2023. The company has also invested in India, with plants in Chhatrapati Sambhajinagar and Pune, and a technology center. In 2023, Škoda opened a logistics facility for exporting components to Vietnam.

Škoda is committed to sustainability, with its Chhatrapati Sambhajinagar plant running on green energy and the Pune plant on track to achieve CO2 neutrality by 2030. Additionally, Škoda supports local suppliers, infrastructure development, and social initiatives, while expanding its photovoltaic system to cover 30% of the Pune plant’s electricity needs.