Skoda looks to tap lucrative sub-4 mtr segment with compact SUV Kylaq

Czech automaker Skoda is looking to get into the high volume segment in the Indian market as it gears up to drive in all-new compact SUV Kylaq in India, according to a senior company official. The company, which currently sells four models in India, plans to drive in the sub-4 meter model early next year to compete with the likes of Maruti Suzuki Brezza, Hyundai Venue and Kia Sonet.

Skoda has invested around 250 million Euro on the Kylaq project enabling a 30 per cent increase at its Chakan (near Pune) based manufacturing plant.

The sub-4 meter vehicle segment has witnessed robust growth in recent years and currently accounts for nearly 30 per cent of the overall passenger vehicle sales annually.

In an interaction with PTI, Skoda Auto India Brand Director Petr Janeba said that despite stiff competition, the segment is still growing supported by government policies and the GST structure.

"We do believe that this segment is twice as big as compared with the segments where we are present today...so the volumes coming out should also be twice as our current sales," he said.

Janeba also stated that with the new model coming the company aims to enhance its sales outlets by 25 per cent.

Skoda plans to launch Kylaq early next year.

"We want to enhance sales outlets to over 250 from around 200 what we have today," Janeba said.

The company also plans to enhance the overall sales and service infrastructure to around 350 touchpoints by the middle of the next year from 260 such outlets currently, he said.

Janeba said the automaker also plans to export the model in the Asia Pacific region after establishing the brand in India.

Skoda Auto Volkswagen India Executive Director (Sales, Marketing and Digital) Jan Bures said the model has been developed keeping in mind the evolving customer trends and aspirations in India.

"The under sub-4 meter segment makes up nearly 30 per cent of the market share in the Indian passenger car sector and the Kylaq we believe is adept at tapping this segment," he added.

The model would also take the automaker to new markets among the tier 3 and 4 centres and bring new customers to its fold, Bures said.

Skoda Auto, which has completed 24 years in the Indian market, has sold over 1 lakh units in the last two years in the Indian market.

The Kylaq is based on Skoda's MQB-AO-IN platform.

The automaker currently sells four models -- Kushaq, Slavia, Kodiaq and Superb -- in the market.