Skoda plans launch of compact SUV in India

Skoda's new SUV: The Skoda unit, owned by Volkswagen Group, announced plans on Tuesday to introduce a small sport utility vehicle (SUV) by the second half of 2025, aiming to challenge rivals Tata Motors and Hyundai in the rapidly expanding SUV market.

The upcoming SUV, positioned as Skoda's entry-level offering, targets cost-conscious urban and small-town consumers. This launch is part of Skoda's goal to achieve total annual sales of 100,000 units by 2026, following a two-year period during which it sold around 100,000 cars in the country between 2022 and 2023.

While Skoda has not revealed the name or price of the new model, potential competitors like the Tata Punch and Hyundai Exter start at approximately Rs 6,13,000.

Over the past two years, consumers have increasingly favoured feature-packed SUVs, which now represent half of all car sales in the urban market.

Skoda also plans to capture a 5 per cent market share for the Volkswagen family of cars, including Volkswagen, Audi, and Porsche, while Volkswagen and Skoda currently hold a combined 2.2 per cent market share.

The upcoming SUV will utilise the same platform as Skoda's popular Kushaq SUV and the larger Kodiaq. Platforms serve as the foundation for vehicle construction.

The Kushaq alone contributes 53 per cent of Skoda's sales, with nearly 21,000 units sold in the current fiscal year.

(With Reuters inputs)