Škoda’s India playbook: Steering growth with localisation, relevance, and trust

Škoda Auto India is closing its 25th year in the country on a high note, recording its best-ever sales and expanding deeper into the heart of India. For the Czech carmaker, 2025 has been a year that reflects both evolution and intent; a culmination of years of groundwork under the Volkswagen Group’s India 2.0 plan, and a glimpse of a long-term strategy anchored in three principles: relevance, differentiation and trust.

“It has been one of our biggest years,” says Ashish Gupta, brand director, Škoda Auto India. “By the end of October, we have sold close to 62,000 cars, which is the highest ever for us as a brand. We have doubled our market share, and we are now ranked seventh in the market compared to eleventh last year. It has been a year of transformation, expansion and growth.”

From milestone to momentum

The brand’s 25th anniversary coincided with the return of its cult performance sedan, the Octavia RS, and a campaign film featuring sitarist Rishab Rikhiram Sharma. The film captures the Octavia RS at full throttle on the racetrack to the tune of Sharma's sitar strings, serving as a metaphor for Škoda’s larger story of blending heritage with modernity.

“The Octavia has always been the car that has defined Škoda as a brand in India,” Gupta says. “It was the first car we entered the country with, and bringing it back now was a fitting way to celebrate this milestone.”

The limited batch of 100 units of the Octavia RS, priced at Rs 49.99 lakh (ex-showroom), sold out within a day of bookings opening. But beyond its immediate success, the campaign underlined how Škoda is evolving its brand expression, positioning itself as distinct in a crowded market yet increasingly relatable to Indian audiences.

This comes after the brand's dedicated 25th year anniversary campaign titled Fans, Not Owners, was launched a couple of months ago.

Driving expansion through India 2.0

Škoda’s resurgence in India is closely tied to the Volkswagen Group’s India 2.0 initiative, which saw an investment of over a billion euros to develop the MQB-A0-IN, an India-specific automotive platform. The locally engineered architecture underpins cars such as the Kushaq, Kylaq, Slavia and Volkswagen Taigun, allowing both brands to cater to Indian preferences without compromising on European quality.

Škoda Auto India now commands 2 percent of the passenger vehicle market, where it competes directly with a wide range of brands in India’s compact and mid-size SUV and sedan segments. Maruti Suzuki, Tata Motors, and Mahindra & Mahindra continue to dominate the Indian passenger vehicle market.

Gupta attributes the success to consistent execution rather than short-term targets. “Our strategy is not for six months or one year,” he says. “Strategy is for five to ten years. Within those guidelines, you navigate based on market movements.”

Beyond metros: deeper roots and local voices

A key aspect of that strategy is geographical and cultural expansion. Škoda has rapidly increased its physical presence, growing from 240 touchpoints at the end of last year to around 380 today.

“Almost 60 percent of our touchpoints are in tier 2 and tier 3 towns, and 60 percent of our sales now come from these regions,” Gupta notes. “That is natural because tier 2 and tier 3 towns are where the growth is happening in the Indian economy. That is where a product like the Kylaq is more relevant.”

The brand is also focusing on localised storytelling to strengthen its emotional connection with consumers. “We have tried consciously to use Indian regional languages and gone heavy into regional publications, television, influencers and digital media,” Gupta explains. “It is about better regional and emotional connect.”

Differentiation through authenticity

In a crowded automotive market where every brand is vying for attention, Škoda’s communication remains understated yet deliberate. “Relevance does not come from shouting about it or spending mega bucks on advertising,” Gupta says. “Customers start believing in a brand when they have access to it.”

He adds that differentiation for Škoda is rooted in its identity. “We are different because of our European heritage, engineering strength and 130 years of legacy, but we continuously blend it with modernity and new technology. That is what the Škoda brand stands for.”

While the company occasionally collaborates with influencers or artists, Gupta clarifies that such partnerships are always contextual. “Whenever we associate with someone, it has to make sense to people. Content is king. Whoever brings out the best content in the market wins.”

Building trust for the road ahead

The third pillar of Škoda’s strategy, trust, extends beyond sales figures. For Gupta, it is about creating a consistent experience across dealerships, products and after-sales. “For us, trust means being consistent in our service experience all across the country,” he says.

Looking forward, the brand plans to sustain its growth trajectory by adapting to new technologies and emerging customer needs. “If being relevant means being in different powertrains or segments, that is what the brand will do. If differentiation means talking about the Octavia or the Kodiaq, that is what we have to do,” Gupta says.

From its debut in 2001 with the first-generation Octavia to its current locally developed line-up, Škoda Auto India’s journey mirrors the evolution of India’s automotive market itself. What began as a niche European brand for the aspirational urban buyer is now transforming into a locally rooted player that understands regional dynamics and consumer diversity.