Skoda India is shifting gears and setting its sights beyond the bustling metros, aiming to unlock fresh growth in tier-2 and tier-3 cities. As the competition heats up in the Indian auto market, the company is placing a big bet on smaller towns to drive its next phase of expansion.
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Expansion
Currently, Skoda has 260 customer touchpoints spread across 150 cities in India. But the company isn’t stopping there. By the end of this calendar year, it plans to ramp up operations to 350 touchpoints in 200 cities. This strategic move is clearly designed to improve accessibility and brand visibility in untapped regions, where the appetite for stylish, reliable vehicles is steadily growing.
Skoda’s outreach into these areas is more than just dealership numbers. It reflects a larger trend among automakers in India—going hyperlocal to chase volumes in smaller cities that are quickly modernising and gaining economic momentum.
Catalyst
What’s fueling this bold expansion? One word: Kylaq. Skoda’s newest offering, the Kylaq, has made the brand more affordable and accessible by entering the sub-Rs. 10 lakh segment. This pricing shift has opened the doors to a whole new customer base—buyers who previously didn’t consider Skoda simply because it was out of their budget range.
For many first-time car buyers in tier-2 and tier-3 cities, price remains a major factor. The Kylaq’s launch has helped Skoda shed its image of being an only-premium brand and become a more practical option for middle-income families.
Efficiency
Adding another layer of appeal, Skoda is now evaluating CNG options for its turbo petrol engines. This is a significant move that could attract even more cost-conscious buyers from smaller towns, where fuel economy and running costs weigh heavily on purchase decisions. CNG cars are increasingly seen as a viable solution to rising fuel prices, especially in non-metro areas.
If the company goes forward with a CNG lineup, it could further position itself as a value-driven brand without compromising on style and performance.
Updates
On the product side, there’s plenty in the pipeline. Facelifts for the Skoda Kushq and the Slavia are due later this year, keeping the models fresh and competitive. These mid-life updates are expected to bring subtle design changes, tech enhancements, and improved features to match evolving buyer expectations.
Skoda is also doubling down on its premium appeal with two new additions—the next-generation Superb and the Octavia RS performance sedan. These models will cater to enthusiasts and buyers looking for high-end performance with European styling.
Strategy
With a dual strategy of expanding reach and diversifying its product range, Skoda seems ready to embrace a much broader segment of the Indian market. By blending affordability with performance and style, the brand is trying to speak to both the value-conscious buyer in smaller cities and the premium customer in urban hubs.
The auto market in India is evolving fast, and regional cities are no longer sidelined in purchasing power or aspirations. Skoda’s aggressive move into these regions suggests that it recognises where the next wave of growth is coming from—and it’s revving up to lead the race.
FAQs
How many cities does Skoda currently serve?
Skoda currently has touchpoints in 150 cities.
What is the Kylaq’s price advantage?
It enters the market below Rs. 10 lakh, attracting budget buyers.
Is Skoda planning CNG models?
Yes, it’s evaluating CNG with its turbo petrol engines.
Which models will get facelifts in 2025?
The Kushq and Slavia will receive facelifts this year.
What premium models is Skoda launching?
The Superb and Octavia RS will join its premium lineup.
