Skoda Auto, the Czech car manufacturer, has emphasized the importance of India in its global expansion plans. Recently, the company shared its results for the calendar year 2024 and highlighted that India is a crucial part of its international strategy and will serve as a future export hub.

In 2023, Skoda Auto revealed that India would be the export center for its operations in the ASEAN and Middle East markets. The company kicked off its activities in Vietnam, which serves as a strategic entry point into the wider ASEAN region, using Completely Built Units (CBUs) from India. Looking ahead, they plan to start assembling vehicles in 2025 at a new facility in Quang Ninh province.

Initially, production will concentrate on the Kushaq, followed by the Slavia, utilizing synergies with Skoda’s manufacturing setup in India through imported CKD (Completely Knocked Down) kits. This is where India will play a pivotal role as the brand's export hub. Skoda's international growth is also picking up pace in other areas; for instance, in Kazakhstan, the company successfully re-entered the market, delivering over 1,400 vehicles to customers last year.

Skoda Auto is stepping up its dedication to India

The Skoda Kylaq made its debut in India earlier this year, marking a significant move for the brand in the country. This model is Škoda's biggest gamble yet, as they aim to tap into the competitive sub-four-metre segment, which represents nearly half of all car sales in India. The company has set an ambitious goal of selling 100,000 vehicles in the Indian market by 2026, and the Kylaq is expected to be a key player in achieving that target.

As the third vehicle launched under Skoda's India 2.0 initiative, the Kylaq follows the Kushaq and Slavia, which have already helped the brand capture about 30 percent of the Indian passenger vehicle market. With the Kylaq's introduction, Škoda is looking to broaden its presence and strengthen its foothold in this important segment.

The Kushaq and Slavia helped the brand make its mark in Tier-1 cities, but the Kylaq is set to open up big opportunities in Tier-2 and Tier-3 markets. Arora pointed out that launching the Kylaq alongside boosting dealership networks in these regions will not only make it easier for customers to access this new model but also increase sales of other India 2.0 offerings.

The Kylaq will showcase Skoda's expertise in premium vehicles, including the upcoming Kodiaq, to audiences in Tier-2 cities. This strategy shows Skoda's commitment to growing its footprint and enhancing its brand visibility across different segments of the Indian market, as Arora noted.

Skoda Auto's results for 2024

Skoda Auto Group had an incredible financial year in 2024, raking in record sales of about $30.364 billion (€27.8 billion), which is a 4.7% jump from last year. Their operating profit shot up by 30% to around $2.51 billion (€2.3 billion), and net cash flow more than doubled, exceeding $2.18 billion (around €2 billion), marking a whopping 116.2% increase year-over-year. The company’s return on sales also rose to 8.3%, highlighting its financial strength and resilience.

In 2024, Skoda delivered 926,600 vehicles globally, reflecting a 6.9% increase compared to the previous year. The Skoda Octavia continued to be the brand's best-seller, with 215,700 units sold, which is a 12.4% increase. The company also experienced a significant rise in deliveries across Europe, surpassing the overall market growth and moving up to the fourth position among carmakers, up from seventh in 2023.

Looking forward, Skoda is set for ongoing success with its most varied and modern product lineup yet. With models available across all types of drives, the company is expanding its electric vehicle offerings, including the new Elroq, an all-electric compact SUV, and the recently launched next-gen Enyaq. With a strong focus on innovation and market growth, Skoda Auto is ready to build on its impressive momentum in the years to come.

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