Skoda Auto Volkswagen India Private Limited (SAVWIPL) has achieved a significant manufacturing milestone, with the production of the Skoda Kylaq crossing the 50,000-unit threshold in January 2026. This volume was reached within 12 months of the model’s launch, underscoring the compact SUV’s role as a primary volume driver for the brand in the Indian market.
Sales Performance and Market Impact
Throughout the 2025 calendar year, the Kylaq recorded cumulative retail sales of 46,872 units. This performance translates to a consistent monthly run rate of approximately 3,906 units. The model’s entry into the sub-four-meter segment was instrumental in driving a 36 percent year-on-year growth for the Group in 2025. The gap between the 2025 year-end sales and the 50,000-unit production milestone is accounted for by manufacturing output and dispatches completed in the first weeks of January 2026.
Manufacturing and Localization Strategy
The Kylaq is the first sub-4-meter SUV from Skoda developed specifically for the Indian market, utilizing the localized MQB-A0-IN platform. To support the production requirements, SAVWIPL implemented several strategic updates to its operations:
- Capacity Expansion: Production output at the Chakan manufacturing facility was increased by 30 percent to meet sustained demand.
- Localization: The Group achieved higher levels of domestic component sourcing, enhancing cost competitiveness and strengthening the local supplier ecosystem.
- Platform Utilization: The vehicle leverages the Group’s modular platform, designed for both domestic and potential export requirements.
Industrial Significance
Piyush Arora, Managing Director and CEO of Skoda Auto Volkswagen India, stated that the 50,000-unit achievement reflects the market reception of the MQB-A0-IN platform. The milestone was marked in the presence of H. D. Kumaraswamy, Union Cabinet Minister of Heavy Industries and Minister of Steel, highlighting the industrial scale of the project. As the company continues its long-term investment in the Indian automotive ecosystem, the Kylaq represents a shift toward higher-volume, localized manufacturing to drive regional growth.
