Skoda Auto India Plans Up To 12% Sales Growth In 2026

Skoda Auto India anticipates 10-12% sales growth in 2026, outpacing the passenger vehicle industry's projected 4-5% expansion despite a high base from its record 2025 performance. Brand Director Ashish Gupta shared this outlook amid West Asia supply chain disruptions, emphasizing sustained momentum from the Kylaq sub-4m SUV.​

The company doubled volumes to 72,665 units last year, driven by Kylaq's strong uptake alongside Slavia sedan and Kushaq SUV refreshes. Gupta noted moderating growth post-100% surge is realistic, with tier-2/3 markets now contributing 45-48% of sales through network expansion to 350 touchpoints across 200 cities by year-end.

Skoda's India 2.0 strategy, launched in 2022, underpins this optimism with 10 product actions planned, targeting 90% market penetration from 82-83%. Exports remain robust at 50% of non-Czech production, bolstering global positioning while domestic focus shifts to automatics—expected to hit 80% market share this decade.

Geopolitical headwinds from the US-Israel-Iran conflict complicate chip and component flows, yet early 2026 indicators show 10% YoY PV growth in January-February. Gupta prioritizes profitability alongside volumes, cautioning against over-reliance on festive tailwinds seen in Q3 CY2025's 110% jump.

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Smaller cities fuel this trajectory, with Kylaq crossing 34,500 units since debut and service programs enhancing ownership appeal. Skoda eyes 5% overall market share by 2030, blending ICE upgrades with EV introductions on the MQB-A0-IN platform tailored for Indian conditions.

As competitors grapple with similar uncertainties under President Trump's trade policies, Skoda's disciplined approach—balancing expansion, localization, and premiumization—positions it for consistent outperformance in India's maturing auto landscape.

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