India is Skoda's most crucial market outside Europe, says CEO Zellmer

02 Jul 2024 CW Team

Czech car maker Skoda is preparing to launch new models, expand its sales network, and seek partnerships to enhance its business in India, which is its most important market outside Europe. Global CEO Klaus Zellmer shared that the company, which currently sells models like Kushaq and Slavia in India, plans to introduce a new compact SUV early next year. This move aims to nearly double its sales volume in the country.

Last year, Skoda Auto India sold around 49,000 units. India, the world's third-largest passenger vehicle market, saw annual dispatches surge to 42 lakh units in FY24.

Skoda, part of the Volkswagen Group, is also looking to introduce electric vehicles in the Indian market. Zellmer emphasized the company's willingness to learn and be customer-centric, given the significance of India to their brand outside Europe.

He highlighted that India is critical to Skoda Auto's growth strategy, offering the brand a competitive edge in its international expansion. Zellmer pointed out that the company's exit from Russia and underperformance in China makes India a key focus for future success.

He mentioned that relying solely on Europe as a market is not wise for the company. By diversifying and focusing on India, Skoda aims to strengthen its global position. Zellmer further noted that India is not only the most attractive region outside Europe but also the most competitive, with many new competitors and entrants in the market. This makes it a highly challenging environment, reflecting the dynamic nature of the automotive industry in India.

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