Škoda Auto India eyes record sales, targets 8-10% growth on strong market momentum

MUMBAI

Škoda Auto India is targeting 8-10% growth in sales this year, which would take the automaker to its highest-ever sales volume, despite facing a high base following last year’s GST-led demand surge, a senior company official said.

“Year till date, we are on a growth path of around 8%, which I think is quite good for us. With the facelift Slavia, I am expecting to end this year with an 8-10% growth,” said Ashish Gupta, Brand Director, Škoda Auto India.

The company had ended last year on a strong note following the reduction in GST rates, making the current year’s growth comparison challenging. Mr. Gupta said the market had been declining before the GST reforms, particularly in the smaller-car segment, but demand picked up sharply after the tax changes.

“Till August, the market has grown almost 23%, which is phenomenal,” Mr. Gupta said, adding that despite the high base from September-December last year, he expects the passenger vehicle market to register around 15% growth this year.

He also expects India’s passenger car market to cross 5 million units this year, significantly ahead of earlier industry expectations that the milestone would be reached only around 2029.

“All of us, with all our intelligence, were actually predicting that the market will hit 5 million by 2029, so it’s in a fast-forward mode now,” Mr. Gupta said. However, he cautioned that geopolitical and environmental uncertainties could affect the continuation of the current momentum.

For Škoda, the Slavia facelift is expected to provide an additional boost during the crucial festive season. The company had committed to introducing 10 product interventions during the year and has completed the programme with the launch of the updated sedan.

“The Slavia facelift has got very good reception. We introduced the car last month. We are launching it right at the start of the festive season, so that it will help us to push the volumes of the Slavia,” he said.

Škoda is also preparing for a significant shift in its product strategy. The company plans to launch its first electric vehicle in India next year, marking its entry into the country’s rapidly expanding EV market.