**Skoda Aims for Profitability in India with New SUV Launch**
New Delhi, Jan 28 (PTI) – Czech automaker Skoda is targeting profitability in India this year, anticipating a significant increase in sales as it enters the high-demand sub-compact SUV market with its latest model, the Kylaq. A senior company executive expressed optimism about the brand’s growth potential, projecting that India could become one of Skoda’s top five global markets due to increased sales volume.
In a discussion with PTI, Martin Jahn, Skoda Auto’s Board Member for Sales and Marketing, outlined the company’s strategy to expand its vehicle lineup, including electric models, and enhance localization efforts to scale operations in India. Jahn stated, “We aim to more than double our sales this year. We believe India will rank among Skoda’s top five global markets. Additionally, we plan to leverage India as an export hub for regions such as the Middle East, North Africa, and Australia.”
Reflecting on Skoda’s success in Europe, where it achieved the fourth position in market share last year, Jahn emphasized the need for diversification, identifying India as a crucial market outside Europe. He mentioned that while the company is focused on establishing its current product offerings, including the Kylaq, Kushaq, and Slavia, it also plans to introduce the premium sedan Superb, a new version of the Kodiaq SUV, and an electric SUV in the Indian market.
“We need to solidify these models in the market and achieve substantial volumes. For the immediate future, we have sufficient offerings, and we will assess market developments thereafter,” Jahn explained. He acknowledged the challenge of achieving profitability, particularly for European manufacturers, and stressed the importance of scaling operations to maximize the volume of existing models before considering new launches.
To achieve profitability this year, Skoda will focus on enhancing localization and reducing costs. Jahn noted, “We must implement efficiency programs in every country, including Europe, where we already operate with lean structures. In India, we will also need to run efficiency initiatives.” He highlighted that increasing volumes, localization, and efficiency are critical factors for achieving profitability in the Indian market.
Furthermore, Jahn mentioned that Skoda is committed to improving various aspects of its operations, from lowering service costs to introducing more affordable products to foster growth in India. The automaker has already received 20,000 bookings for the Kylaq and sold 36,000 units in India last year, with a target of 49,000 units for 2023.