Skoda aims to hold 2% market share, cautious on post-GST outlook as updated Slavia, Kushaq set to arrive in 2026

Ashish Gupta, Brand Director, Skoda Auto India

Skoda Auto India, which is celebrating its 25th anniversary, is targeting a steady 2% share in the domestic passenger vehicle (PV) market while taking a cautious view on post-GST demand trends and preparing to roll out updated versions of the Slavia and Kushaq in 2026.

The company is also focussing on stability and regulatory readiness as it closes its strongest-ever year in India, having sold 61,607 cars between January and October 2025, already surpassing its previous annual record of 53,721 units in 2022.

"Our aspiration is to maintain a 2% market share," Skoda Auto India Brand Director Ashish Gupta told Moneycontrol in an exclusive interaction.

The carmaker currently offers five models -- Kylaq compact SUV, Kushaq mid-size SUV, Kodiaq premium SUV, Slavia mid-size sedan and Octavia RS performance sedan. Limited to just 100 units, the Octavia RS was sold out within 20 minutes of the opening of pre-bookings.

"Before the GST changes, the market was supposed to grow only conservatively by 2 or 3% next year. The GST changes definitely have given a fillip in the festive season. But it is too early to say what effect it will have for next year," he said.

Gupta observed that the full impact of GST 2.0 will become clear only over the next few months. "We will have to wait and watch the November and December results. We will get some trends then, on whether there will be an uptick in demand, whether there will be further growth in the market and which segments will grow more. These trends will settle over the next three to six months," he noted.

The company's recent performance has been driven by the Kylaq, Skoda's first sub-4 metre compact SUV. The new model has contributed significantly, reaching nearly 40,000 units in sales.

Skoda has also achieved a cumulative milestone of 2,00,000 locally produced vehicles, covering the Slavia, Kushaq and Kylaq. The company's network has expanded to 318 customer touchpoints across 180 cities, up from about 200 in 2022, marking one of the largest expansions in its history. India has additionally become the first market globally to complete a full rebranding of Skoda's dealer network to its new corporate identity and design.

Gupta confirmed that both the Slavia and Kushaq will receive major updates in 2026. "Some news in the first half of 2026, another news in the second half," he said, suggesting sequential rollouts to maintain showroom momentum through the year.

Skoda's current portfolio is compliant with Corporate Average Fuel Efficiency (CAFE) norms, and the company plans to align upcoming products with the stricter standards expected from April 2027.

While Skoda has no immediate plans to introduce an electric vehicle (EV) in India, Gupta reiterated that localisation will be central to any future electrification strategy. He ruled out importing global models such as the Enyaq through the fully built unit (FBU) route due to high costs under India's taxation regime.

"It is not that we cannot launch an EV. I can bring 100 Enyaq electric SUVs into the country. Why only 100 units and why not 1,000 units? The simple reason is regulation and the taxation structures," he said, explaining that introducing imported EVs would not make economic sense for either the company or customers.

"So from a global portfolio through the FBU route, it is not going to be viable to be introducing cars into India. However, having said that, EVs have to be there, as they are the future. We want to be a relevant player in India, and if we want to be a relevant player in India, we have to get into the EV space, but localised EVs," Gupta observed.