Skoda Auto Completes 25 Years, Aims For Carbon Neutrality By 2030 In India

Skoda Auto has completed 25 years in India, starting from the Chhatrapati Sambhajinagar plant and launching its most historic and successful Skoda Octavia in 2000.

Hyderabad: Skoda Auto is celebrating its 25th anniversary in India in 2025. The automaker entered the country's market in January 2000 and set up its manufacturing plant in Chhatrapati Sambhajinagar (formerly known as Aurangabad), Maharashtra. Notably, Skoda was the first Volkswagen Group brand to come to India and mark its presence.

Skoda Auto India: 25 Years of Journey

Skoda Auto planned to launch the modern Octavia in India. This sedan is Skoda's most historic and successful model, celebrating its 65th anniversary last year. As the manufacturing plant in Chhatrapati Sambhajinagar was under construction, Skoda assembled the imported parts of the Octavia in a rented facility.

The locally-built Skoda Octavia became a success in the Indian market, making a path for other global models such as Fabia, Rapid, Superb, and Kodiaq.

The automaker then partnered with Volkswagen, its parent company, and started operating in its Chakan plant, acting as its second plant, located in Pune, Maharashtra. The Chakan plant became the hub for its locally-produced Rapid, followed by Kushaq and Slavia. The Skoda Kushaq and Slavia are built on the localised MQB A0-IN platform as part of the company's India 2.0 project, first introduced in November 2001. Notably, the recently launched subcompact SUV, Skoda Kylaq is also built on the same platform, leading to 95 per cent localisation as per the company.

"We have built on 25 years of experience in India to make this thriving market the cornerstone of our international growth strategy. With its tremendous talent pool, growing consumer demand, and access to other markets, India is becoming our second pillar outside Europe and helping leverage further sales potential in ASEAN, the Middle East, and the Indo-Pacific region," Klaus Zellmer, CEO, Skoda Auto, commented on the occasion.

Zellmer further mentioned that the company has been a notable brand in India since it entered the market with the Octavia in 2001. Currently, Skoda produces in two plants and has launched three all-new models specifically for India, achieving localisation of up to 95 per cent. These models include the Skoda Kushaq, Slavia, and the recently introduced Kylaq compact SUV, which complement the Octavia and Superb, also sold through a growing dealer network.

"In the last two years, we have increased customer touchpoints across the country by 35 per cent. India also contributes to the global sustainability goals of Skoda Auto. One plant already runs entirely on green energy, while the plant in Pune expanded its photovoltaic system to deliver up to 30 per cent of its electricity needs. I want to thank all our Indian colleagues for helping power the next stage of our growth, and especially our customers for their trust in our products. With this passion, we can achieve even greater things in the next 25 years," the CEO added.

India: The Key Contributor to Skoda's International Plans

In 2018, the Czech automaker was appointed to lead all the Volkswagen Group's activities in India. During this time, Skoda developed the MQB-A0-IN platform exclusively for the Indian market. The Skoda Kushaq was the first vehicle to be built on this platform in the Chakan plant.

Meanwhile, Skoda developed India as its key market through which it expanded to the Middle East, Australia, New Zealand, and the ASEAN region.

In 2023, the company opened a modern logistics facility to export car components to Vietnam.

Carbon Neutrality Plants in India by 2030

Skoda Auto is planning to make its Chakan and Chhatrapati Sambhajinagar plants carbon neutral. The Chhatrapati Sambhajinagar facility already operates totally on green energy. While the Chakan plant will achieve carbon neutrality by 2030. This 500-hectare plant provides a habitat to more than 300 species of plants, trees, and animals. Moreover, in the Chakan plant, Skoda has expanded its photovoltaic system which is capable of producing 26.6 GWh of electricity annually. This covers 30 per cent of the plant's electricity consumption.