Skoda Auto India has had a busy year, with the launch of the Kylaq, the return of the Kodiaq, an expanding dealer network and plans to strengthen its presence across multiple segments. The company is also preparing for an electric future while continuing to invest in its petrol-powered portfolio. In this interview, Brand Director Ashish Gupta talks about Skoda’s sales growth, the launch of the Kodiaq RS, upcoming model updates, EV strategy and the steps being taken to improve the ownership experience in India.
On his first year at the helm of Skoda India.
Coming from Volkswagen, I’ve basically switched to the other side of the office, but I’d say it’s been challenging but exhilarating. I’m more than satisfied with the year, from the brand side, sales and also setting the foundation for the future. All our KPIs – brand image, awareness, consideration, network coverage, dealer profitability, customer satisfaction, market coverage, etc. – have improved, and we have done really well. In sales, we went from number eleven to seven, and we also became number four in the global sales ranking for Skoda, just slightly behind the UK.
On the launch of the Kodiaq RS.
The Kodiaq is our flagship. It came here in 2017, and we have it on sale again. At the same time, this year marks 125 years for Skoda in motorsport, and it’s also about 50 years since the RS badge was first born, so we thought it would be great to bring in the Kodiaq RS as the pinnacle of our engineering and motorsport heritage. It’s coming in as a fully built unit, and we have only 50 units; allocation is a challenge when it’s a bestseller abroad, but we have the option of another batch later on.
On the Kylaq driving Skoda’s sales growth.
Yes, a large portion of our sales came from the Kylaq, but that was also because we were running out the Kushaq, which was due for an update and has now been launched. So, the demand for the Kushaq was always there. Also, it’s only been two months, so it’s too early to qualify, but we have seen an uptake of about 40% in sales, and the order book is solid.
On the Slavia and the upcoming update.
The Slavia is a very special model for us. SUVs are the flavour of the season, but sedans are doing fine too, and we are among the few manufacturers in the world that still have a sedan portfolio, all of which are doing well. In India, the Slavia continues our sedan legacy of models like the Octavia, Superb and Rapid, and so, yes, it will see an update, but it’s early to specify details.
On the company’s electric vehicle plans.
If you want to be a relevant player in that space, you have to have a local play, so that’s what we are working on. EV penetration was 7% in May, up from 4.5% at the end of last year, so yes, this is a space where we will accelerate our plans, but you cannot do this suddenly, as there are factors like the supply chain to consider. But there’s an international portfolio too that we can look at.
On the possibility of the Peaq making it to India.
Bringing in a global model is very difficult as far as pricing goes, and the EU-FTA, as you know, does not give benefits to EVs for now. So, for now, we have to look at what makes sense, and yes, a larger EV is easier to manage pricing with. And yes, the Peaq is certainly on my radar. We will look at the specifications and see how we can best manage that with pricing, as you cannot have a high-priced CBU but be low on equipment. So, we are working on this. My ambition is to get the global portfolio to India.
On a petrol-only portfolio and flex-fuel cars.
If you see, year to date, the petrol market is about 46%, which used to be above 50% last year, so there is a shift, but the market is also growing by 20%. So even if the share of other fuels is rising, the absolute volume of petrol is increasing, so I’m not worried about our current portfolio. As for flex fuel, yes, ethanol is a longer-term strategy that the government wants, so we have to look at it, and we are, but there is work to manage this, as we have to look at the engine portfolio and manage our strict emission norms too.
On addressing Skoda’s dealer experience.
If you look at our customer experience scores, they have been improving. Sales have grown by almost 12 percent over the last year, and customer experience for service has improved by 18 to 20 percent. So, are we perfect? No, but the trend has improved and is only rising. Also, we are now present at about 335 touchpoints in 183 cities and are just inaugurating our 200th workshop in India, so we are getting closer to our customers. We have competitive service packs and excellent parts availability. Today, we have a parts service rate of more than 96 percent at our warehouses and dealerships, which is among the best in the industry.
