Škoda Auto entered the highly dynamic Indian market 25 years ago. In January 2000, the Czech car manufacturer laid the foundation stone for its plant in Chhatrapati Sambhajinagar (formerly Aurangabad until 2022), becoming the first Volkswagen Group brand to establish a presence in the country. The Škoda Octavia was the first locally assembled model. Today, India plays a crucial role in Škoda's internationalisation strategy, enabling the company to tap into sales potential across the ASEAN region, the Middle East, Australia, and New Zealand.
Since 2018, Škoda Auto has been leading Volkswagen Group's activities in the region. Currently, the company develops and manufactures three locally produced models—the Kushaq, the Slavia, and the newly launched Kylaq compact SUV, which expands its footprint in the popular sub-4-metre segment.
Klaus Zellmer, CEO of Škoda Auto, stated: "We have built on 25 years of experience in India to make this thriving market the cornerstone of our international growth strategy. With its exceptional talent pool, rising consumer demand, and access to other markets, India is becoming our second pillar outside Europe, helping us unlock further sales potential in ASEAN, the Middle East, and the Indo-Pacific region. Škoda has been a recognised brand in India since we introduced the Octavia in 2001. We now operate in two plants and have launched three all-new models designed specifically for India, achieving localisation of up to 95 per cent —the Škoda Kushaq, Slavia, and the Kylaq compact SUV—alongside the Octavia and Superb, which we continue to sell through an expanding dealer network. Over the past two years, we have increased customer touchpoints across the country by 35 per cent. India is also contributing to Škoda Auto's global sustainability goals. One of our plants already operates entirely on green energy, while our Pune facility has expanded its photovoltaic system to supply up to 30 per cent of its electricity needs. I want to thank our Indian colleagues for driving this remarkable growth and, most importantly, our customers for their trust in Škoda. With this passion, we can achieve even greater milestones in the next 25 years."
Piyush Arora, MD & CEO of Škoda Auto Volkswagen India, added: "Škoda was the first Volkswagen Group brand to establish a presence in India, setting up its first plant in Chhatrapati Sambhajinagar in January 2000. As we celebrate 25 years in the country, the Group's commitment to India continues to strengthen. With evolving consumer preferences, we are introducing products that combine the Group's global expertise with deep local insights. Today, our model line-up includes advanced vehicles designed and built specifically for India, including the newly launched Škoda Kylaq compact SUV. This dynamic market has become the foundation of Škoda's internationalisation strategy, driven by our commitment to innovation, safety, sustainability, and customer-centric solutions. We are dedicated to enhancing our manufacturing capabilities, expanding our sales network, and accelerating sustainability initiatives to create long-term value for our customers, employees, and communities."
Investments and Employment Growth
India has become a key market for Škoda and a strategic hub for the ASEAN region, the Middle East, Australia, and New Zealand. In addition to assembly lines in Chhatrapati Sambhajinagar and a manufacturing plant in Pune, Škoda has established a Technology Centre in Pune. In October 2023, the company also opened a modern logistics facility for exporting components to Vietnam, marking its expansion into the Vietnamese market.
Commitment to CO₂ Neutrality by 2030
Sustainable production remains a priority for Škoda, including its Indian operations. The Chhatrapati Sambhajinagar facility is already powered entirely by green energy, while the Pune plant aims to achieve CO₂ neutrality by 2030. Additionally, the 500-hectare Pune site serves as a natural habitat for over 300 species of plants, trees, and animals. Škoda actively collaborates with local suppliers and contributes to infrastructure development, education, and social initiatives. The company has also expanded its photovoltaic system in Pune, now capable of generating up to 26.6 GWh of electricity annually—enough to meet 30 per cent of the plant's energy needs.