Kylaq Is Single-Handedly Saving Skoda In India: Proof
When Škoda launched the Kylaq in January 2025, few could have imagined the impact it would have on the company’s future. In just six months, this compact SUV has become the centrepiece of Škoda’s India plans, driving record sales, reshaping the brand’s customer base, and turning around a business that had long struggled to break into the mass market.
Sales Explosion Driven by One Model
Škoda recorded its best-ever half-yearly sales in the first six months of 2025, with 36,194 units sold—a 134% jump over the same period in 2024. And this wasn't a team effort. A staggering 65% of this figure came from just one model: the Kylaq, which alone contributed 23,714 units.
By May 2025, the trend had intensified. Of the 6,530 cars sold that month, 4,949 were Kylags, roughly 76% of Škoda’s total monthly sales. This level of dependence on a single model would usually be a red flag. But for Škoda, it signals hope.
Making Škoda Accessible
The Kylaq's base price of ₹8.25 lakh (ex-showroom) made it the most affordable Škoda ever. This brought a new set of buyers into the fold—first-time car owners and people upgrading from hatchbacks, who previously found Škoda’s offerings too expensive.
With 96% localisation, the Kylaq maintained Škoda’s reputation for quality while keeping costs low. It also allowed the brand to compete directly in the sub-4 metre SUV segment, which accounts for nearly 30% of passenger vehicle sales.
Škoda Auto India Brand Director Petr Janeba summed it up clearly: “This is the start of a new era. With the Kylaq, we’ve become a volume player.”
Boosting the Service Ecosystem
Kylaq’s success didn’t just move metal—it also revived Škoda’s aftersales ecosystem. The company expanded its service network from 260 to over 300 outlets by mid-2025. Notably, 86% of this growth came from Tier 2 and Tier 3 cities, where demand for affordable cars is rising fast.
Škoda's service network is now equipped to handle more than 550,000 vehicles a year, a scale that wouldn’t have made sense without the Kylaq’s volumes. For dealers, it has turned Škoda from a slow-moving brand into a busy, mainstream player.
Kushaq Feels the Heat
Not everything has gone smoothly. The Kylaq’s popularity has come at the expense of its older sibling, the Kushaq. Sales of the larger SUV have dropped significantly, from 1,500–2,000 units per month to below 1,000. In May 2025, it managed only 644 units, a sharp 44% drop from the same month last year.
Some customers who might have gone for the Kushaq are now choosing the Kylaq instead. With similar features and a more attractive price, the Kylaq is winning over budget-conscious buyers.
To fix the overlap, Škoda is working on repositioning the Kushaq. It’s introducing more affordable 1.5-litre TSI variants and is planning a facelift for 2025.
Other Models Fall Behind
While the Kylaq is flourishing, other Škoda models are facing a tough time. The Slavia sedan sold just 937 units in May 2025, marking a 39% drop compared to last year. The general decline in sedan popularity is partly to blame, but the situation also shows how heavily Škoda now relies on the Kylaq.
Originally, the Kushaq and Slavia were expected to form the backbone of Škoda’s India strategy. Instead, the Kylaq has taken centre stage, forcing the company to rethink how it manages its line-up.
Volkswagen to Join the Party
Kylaq’s success is also helping its sister brand, Volkswagen. The German carmaker has confirmed plans to introduce its own version of the compact SUV by 2026. While lower variants will share the Kylaq’s engine, the GT versions will come with a 1.5-litre TSI turbo petrol engine.
This move will help Škoda-Volkswagen’s Chakan plant utilise its full production capacity of 255,000 units. Since the Volkswagen variant is based on the same MQB-A0-IN platform, development costs will be low—just around €25 million.
A Make-Or-Break Moment for Škoda
Škoda has long been stuck at around 2% market share despite its India 2.0 strategy. But the Kylaq is aiming to push that to 3%, with targets of 8,000 monthly sales by the end of 2025. If Škoda sells 80,000 Kylags in 2026, it would nearly triple its current volume.
Already, the Kylaq has helped Škoda jump from 11th to 7th place in the carmaker rankings. This has boosted dealer morale and improved supplier confidence.
Lessons From Kylaq’s Success
The Kylaq shows how critical price is when trying to win over mainstream customers. Despite its premium roots, Škoda finally saw volumes only after launching a car with mass appeal.
It also underlines the value of the sub-4 metre segment. With tax benefits and rising demand, this space has been difficult for European brands to crack, but the Kylaq has shown it’s possible.
And finally, it highlights the benefits of platform sharing. By using the same underpinnings as the Kushaq and Slavia, Škoda was able to offer a fresh product without starting from scratch.
What’s Next?
The challenge now is to keep up with demand. Waiting periods have gone up to five months, and production is being ramped up. Škoda is also exploring export opportunities for the Kylaq, thanks to its high localisation and competitive pricing.
With one successful model, Škoda has bought time to improve its other offerings and strengthen its portfolio. The Kylaq has not only changed the brand’s perception—it’s given Škoda a real shot at long-term survival in India’s brutal car market.
This compact SUV hasn’t just saved Škoda. It has set a new standard for how global brands can thrive in a price-sensitive market, and it may well be the model that redefines what success looks like in India.