India may become one of the top-10 markets for Skoda in 2022 with sales expected to treble

Czech carmaker Skoda expects 2022 to be the best year for the brand in India so far in its two-decade long stint in the country as parent Volkswagen Group's India 2.0 plan bears fruit.

The company expects to sell around three times more cars this year than the 23,900 units it sold in 2021, making India one of the top 10 markets by sales for the brand, according to a presentation from Zac Hollis, Brand Director, Skoda Auto India. About 3 million cars were sold in India in 2021.

Skoda’s growth will be on the back of its recently launched Kushaq sport utility vehicle (SUV) and the upcoming Slavia sedan. Both the cars are based on a new platform developed specifically for India by the Volkswagen Group called MQB A0 IN.

The Czech company will also be bringing back its flagship SUV Kodiaq to the country this month, further helping sales.

While the entire automotive industry is struggling with a shortage of semiconductors, limiting their production and their ability to meet consumer demand, Skoda said that it will be better off with the headquarters allocating more supplies to India.

“We are a priority market for the Volkswagen Group worldwide because we are launching cars and we are getting supply of chips,” Hollis said.

To help achieve its targets, the company will be expanding its sales network in the country to about 180 outlets this year from 150 at present. This will ensure its presence in about 145 cities and towns compared to 117 at present. For reference, market leader Maruti Suzuki has over 3,600 sales outlets across over 1,900 cities according to its website.

A larger sales network will ensure that Skoda stays on course for its mid-term target of selling 100,000 cars a year in India, Hollis said.

“Many people in the past have said that Skoda makes great cars, but… This ‘but’ is what we’ve been trying to kick,” he said on Thursday. The reservations of consumers stemmed from the fact that Skoda had fewer service outlets and maintenance of its vehicles cost more compared to other automakers, he said.

The company plans to increase its service network to 160 by the end of this year from 93 at present. The service network was just 59 outlets strong in 2020. Meanwhile, the higher localisation of cars based on the MQB A0 IN platform for India also means that spares will be cheaper, Hollis said.