Skoda's presence in the Indian automotive scene has long been driven by innovative engineering, strong European design, and strategic local adaptation.
A shining example of this was the Skoda Kushaq, which quickly carved a niche for itself as a stylish, compact SUV perfectly tailored for Indian roads. It wasn’t just a car—it was Skoda’s ambassador for the brand’s India 2.0 strategy, drawing attention with its robust build, premium features, and peppy engine options. The Skoda Kushaq held its ground firmly in a fiercely competitive market, especially with rivals like the Hyundai Creta, Kia Seltos, and MG Astor in the same ring.
Initially, the Kushaq’s reception was stellar. Customers were impressed with its sharp looks, top-notch safety rating, and responsive handling. The SUV offered a good balance between premium appeal and functionality. For months, it contributed significantly to Skoda’s growing market share in India. But in a fast-moving auto market, even a good product can be overshadowed, and that’s exactly what seems to be happening in 2025.
Enter the All New Skoda Kylaq—a newer, more aggressively priced SUV with almost equal feature offerings and better alignment with budget-conscious buyers. Introduced under Skoda’s India 2.5 strategy, the Kylaq brings a more accessible Skoda experience to a larger audience. In just one month, it managed to outsell the Kushaq significantly, with over 5,000 units sold compared to Kushaq’s sub-1,000 mark in March 2025. That’s a huge swing and a clear signal of shifting consumer interest.
The reasons for this shift are easy to pinpoint. The Kylaq is essentially offering similar interior features, a tech-forward cabin, and a competitive engine, all while being priced lower. It’s got that irresistible formula Indian consumers love—value for money. As inflation and price sensitivity remain top concerns, it’s only logical that many buyers are opting for the newer model that does not stretch the budget as much.
Kushaq’s sales decline isn’t necessarily a reflection of a flawed product. Instead, it reveals how strategic cannibalization and rapid product rollouts can quickly change dynamics within the same brand. Skoda, knowingly or not, positioned the Kylaq in a way that directly overlaps with the Kushaq’s target demographic. Both cars appeal to young professionals, small families, and city dwellers. But with similar looks, features, and purpose, customers naturally lean toward the more affordable option.
This internal competition might have been part of a broader plan. The India 2.5 strategy aims to deepen Skoda’s penetration in the country by introducing more localized, cost-efficient models. The Kylaq fits that bill perfectly. It’s built to be more scalable in production, keeping costs low, while maintaining Skoda’s brand promise of safety and European engineering.
From a broader industry perspective, this shift mirrors a common theme in India’s automobile space—brands adapting their portfolios to meet evolving demands. What worked a year ago may not work today. Customer expectations are rising, and companies must stay agile. In Skoda’s case, the Kylaq is filling a demand gap the Kushaq perhaps couldn't fully cover.
That said, the Skoda Kushaq still holds value for those who prioritize slightly better finish, marginally more premium appeal, and a more established market presence. There’s also the possibility of Skoda repositioning the Kushaq or offering new variants and promotions to revive interest. Automotive history is full of models that made comebacks through strategic facelifts, better pricing, or added features.
In conclusion, while the Kushaq's sales dip may seem like a red flag, it's more of a realignment within Skoda’s evolving lineup. The Skoda Kylaq's rise is proof that affordability mixed with solid engineering still reigns supreme in India. It’s going to be interesting to watch how Skoda balances its portfolio moving forward—whether it lets All New Skoda Kylaq lead the charge or reinvents the Kushaq to fight back.
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