India central to global expansion plans of Skoda, all eyes on sub-compact SUV

India is one of the most promising growth markets for Skoda Auto and the country will play a crucial role in the Czech automaker's international expansion strategy, the company's global CEO, Klaus Zellmer reportedly said. PTI has reported that while talking about the automaker's roadmap for India, Skoda said that it will enter the highly competitive and in-demand compact SUV segment in India in a year and will also launch its electric vehicle in the market.

Zellmer reportedly said that Skoda Auto India, which currently spearheads Volkswagen AG's India operations, is looking to increase its market share in the country's passenger vehicle space to five per cent by 2030. A key part of this growth strategy is production capacity expansion, where India will play a crucial role, revealed Skoda Auto CEO. "We are continually growing our capacity to respond quickly to the global markets. It is here that India plays a crucial role. Europe is important as a core market, but our strategic focus is on growing a new international foundation so that we can stand on two strong legs," he said, further adding, “India is a key contributor to our global growth and the most promising growth market for the years to come. Strengthening our India operations also strengthens our wider internationalisation potential."

Watch: Skoda Enyaq EV makes India debut at the Bharat Mobility Global Expo

Currently, about 50 per cent of Skoda cars manufactured outside of the Czech Republic are produced in India. Based on this, the auto company's export strategy of made-in-India cars continues to gain momentum. "Our cars have already been exported to the Gulf countries. We've also announced our market entry into Vietnam, supported by our successful operations in India, and cars and components manufactured in Pune are taking Skoda Auto to new parts of the world," Zellmer said.

The Skoda Auto CEO also noted that the car manufacturing company has just fixed its future investment strategy in terms of product enhancements for the existing range and is also adding new products both in internal combustion engine and battery electric vehicles segments.

A Skoda EV and compact SUV on card

The compact SUV segment in India is growing at a rapid pace buoyed by the rising demand for boxy SUVs. Almost every passenger vehicle manufacturer is present in this segment with their respective products. Skoda too is aiming to grab a sizeable share of the segment with a new compact SUV. The OEM has revealed that Skoda is working on a new compact SUV that will be launched in India in about one year. Upon launch, this SUV will compete with tough rivals such as Tata Nexon, Hyundai Venue, Kia Sonet, Mahindra XUV300 etc.

Stating that Skoda Auto will enter a new era in India and international markets, Zellmer said, "This next step will be an all-new compact SUV that we will launch in about one year from today. The new model fully expands our customer offering in the powerful sector of SUVs, which account for more than 50 per cent of the overall new car sales potential in India."

Besides the compact SUV, Skoda is also gearing up to launch its electric car Enyaq in India. Zellmer said the all-electric Enyaq is the foundation of Skoda's EV strategy globally. Skoda Enyaq is expected to hit the Indian market later this year.