Skoda Auto India, one of the leading passenger vehicle manufacturers, has taken the wraps of the all-new Skoda Kylaq, the company’s third model developed locally for the Indian market. With prices starting at INR 789,000, this is the most affordable Skoda car currently available in the market.

This also marks the Czech brand’s first model in the popular sub-4-metre segment, which at present accounts for nearly 50 percent of sales in the Indian car market. The Kylaq C-SUV is the first model in India to feature Skoda’s new Modern Solid design language.

Klaus Zellmer, CEO, Skoda Auto, said, “The Skoda Kylaq is our first sub-4-metre SUV, designed in India and for India as a new entry point to our brand. India is key to our internationalisation plans, the world’s third-largest car market, and SUVs make up 50 percent of new vehicle sales. We want the Kylaq to welcome new customers who are looking in this popular and fast-growing segment. Adding to its appeal, the Kylaq marks the debut in India of our Modern Solid design language, with new visual accents.”

The Kylaq features 189mm of ground clearance, is 3,995mm long, 1,783mm wide and is 1,619mm tall with a 2,566mm wheelbase.

The 1.0 TSI engine produces 178Nm of torque and delivers 85 kW of power. The compact SUV can be had with a six-speed manual or automatic transmission. It has a claimed top speed of 188kmph and can go from zero to 100kph in 10.5 seconds.

Johannes Neft, Skoda Auto Board Member for Technical Development, said, “The Skoda Kylaq is our third offering based on the MQB-A0-IN platform, developed by our teams in India with comprehensive support by our colleagues in the Czech Republic for Indian customers. From the outset, this platform was designed to accommodate a sub-4-metre car like the Kylaq. This SUV is built on four key pillars: comfort, quality, global design language, and safety. That’s why the Kylaq has been rigorously tested across varied terrains, altitudes, and weather conditions. It will lead our presence in India’s fastest-growing and most competitive segment.”

The Kylaq gets over 25 active and passive safety features as standard including six airbags, multi-collision brake, roll over protection, motor slip regulation, electronic differential lock, XDS+, anti-lock brakes, electronic brake force distribution, and electronic stability control, among others. Select variants come equipped with over 35 safety features, such as cornering lights, automatic headlights and wipers, Hill Hold Control, and tyre pressure monitoring system (TPMS).

In terms of space, the five-seater compact SUV has 446 litres of storage, which can be expanded to 1,265 litres with the rear seats folded.

On the inside, it features 10.1-inch infotainment display, which gets Android Auto and Apple CarPlay along with wireless charging support. The driver also gets a 8-inch digital cockpit that provides plenty of information.

Skoda India claims that the Kylaq has been tested for more than 800,000km of Indian terrain, including altitude test, temperature test and rigorous weather and water testing.

Piyush Arora, MD and CEO, Skoda Auto Volkswagen India, said, “Today is another important milestone in our India journey with the World Premiere of the Skoda Kylaq. Kylaq has generated tremendous excitement and buzz through 2024. And I’m extremely proud to unveil the Skoda Kylaq to India and to the world. With its high levels of localisation, unmatched driving dynamics and uncompromising safety, Kylaq will make a significant impact in the market.”

Oliver Stefani, Head of Skoda Design, said, “With the new Kylaq, our Skoda Design team has preserved and re-interpreted key Skoda design elements, combining them with new ideas and visual accents. It is one of the hallmarks of our new Modern Solid design language, ushering in a new era for design in a car that ushers in a New Era for us in India. Modern solid stands for solidity, functionality and authenticity while conveying a sense of safety and strength. The Skoda Kylaq, with its distinctive shape, minimalist and clean looks and functional features like a high ground clearance is a perfect embodiment of our new design approach to customers in India.”

Petr Janeba, Brand Director, Skoda Auto India, shared, “The Kylaq has literally hit the ground running and is going to be powering our growth in India over the next few years. It is the beginning of a new era for us in India. We are aware we are entering what is currently the most competitive segment in India. And are confident the Kylaq has what it takes to make an impact with its safety and driving dynamics. Moreover, the Kylaq boasts some segment-leading features like a six-way front electric seat adjustment with seat ventilation, and a class-leading 446 litres of boot space. The Kylaq continues with our India-focussed product line-up following the Kushaq and Slavia and will further our goal of entering newer markets and bringing new customers into the Skoda family. We believe we have stuck to our promise of accessible pricing of the Kylaq and look forward to ensure it democratises European technology in India. It is a compact car but is larger than life. And that’s the reason we premiere it via a motion picture premiere like never before.”

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 India’s automobile industry delivered a mixed performance in the first quarter of 2025-26, with passenger vehicle exports reaching an all-time high even as domestic sales remained largely flat, according to data released by the Society of Indian Automobile Manufacturers (SIAM) on Monday.

Passenger vehicle sales crossed the one million mark for the second consecutive year in Q1, reaching 1.01 million units, though this represented a 1.4 percent decline compared to the same period last year. The segment’s performance was buoyed by utility vehicles, which now account for 66 percent of passenger vehicle sales and posted 3.8 percent growth, whilst passenger cars declined 11.2 percent.

The standout performer was exports, with passenger vehicles achieving record Q1 exports of 204,000 units, marking a 13.2 percent year-on-year increase. This surge was driven by stable demand across most markets, with particularly strong performance in the Middle East and Latin America, alongside recovery in neighbouring markets such as Sri Lanka and Nepal.

"The performance of the Auto industry was relatively flat, though the retail registration for Passenger Vehicles, Two-Wheelers and Three-Wheelers were marginally higher than the previous Q1," said Shailesh Chandra, President of SIAM.

The two-wheeler segment faced headwinds with wholesale sales declining 6.2 percent to 4.67 million units due to inventory correction across the industry. However, retail registrations increased 5 percent during the quarter, driven by the marriage season and positive demand sentiments. Two-wheeler exports showed robust growth of 23.2 percent to 1.14 million units.

Three-wheelers achieved their highest-ever Q1 sales of 165,000 units, representing marginal growth of 0.1 percent. The segment benefited from increased economic activity supporting urban transportation demand and easier financing options. Exports in this category surged 34.4 percent to 96,000 units.

Commercial vehicles posted a marginal decline of 0.6 percent to 223,000 units, though exports grew strongly by 23.4 percent to around 20,000 units.

Looking ahead to Q2, SIAM expressed cautious optimism despite ongoing challenges. The upcoming festive season is expected to drive demand, particularly for passenger vehicles and two-wheelers, whilst an above-normal monsoon could aid rural income recovery.

"With the upcoming festival season coupled with the benefits of RBI repo rate cuts, we expect consumer sentiments to improve," Chandra added.

The Reserve Bank of India's cumulative repo rate cuts of 100 basis points over the past six months are expected to gradually ease borrowing costs, potentially boosting consumer sentiment and affordability.

However, supply-side challenges persist, particularly the recent export licensing requirement from China on rare earth magnets, which has raised concerns for original equipment manufacturers across all categories.

"Sales of Passenger Vehicles in Q1 of 2025-26 de-grew by (-) 1.4 percent, posting sales of 1.01 million units as compared to Q1 of previous year," said Rajesh Menon, Director General of SIAM.

In June alone, passenger vehicle sales declined 7.4 percent to 312,849 units, whilst two-wheeler sales fell 3.4 percent to 1.56 million units. Three-wheeler sales bucked the trend with 3.8 percent growth to 61,828 units.

The industry's overall domestic sales fell 5.1 percent in Q1 to 60.75 million units, reflecting the challenging operating environment facing India's automotive sector.

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Czech automotive brand Skoda Auto India has announced that it has achieved a new milestone by surpassing 300 customer touchpoints in the country. With this, the OEM has a network of touchpoints in 172 cities across the country and is rapidly expanding its presence in not just tier 1 cities, but also tier 2 and tier 3 markets.

Interestingly, 86 percent of the recent expansion have happened in these geographies and 75 percent of the 300 touchpoints are directly servicing customers in the same cities.

The Czech automaker is marking its 25th anniversary in the country and 130 years globally. It was just recently, Skoda Auto India reported its highest-ever half-yearly sales in the first half of 2025.

Ashish Gupta, Brand Director, Skoda Auto India, said, "Our growing network makes our product range more accessible to customers, while enabling smarter, faster service with consistent quality, across the country. With a strong emphasis on ‘growing together and getting closer to customers’, a large part of our expansion has been undertaken with Skoda Auto’s long-term dealer partners in India, while also bringing new partners with a proven track record of customer centricity into the fold. This expansion is a step forward in strengthening Skoda Auto’s legacy in India and delivering on our promise of safety, value, and a truly rewarding ownership experience."

The expansion the company shared perfectly complements its product strategy, which has been significantly boosted by the Kylaq SUV, joining the Kushaq and Kodiaq to offer an ‘SUV For Everyone.’ The Slavia continues the brand's sedan legacy, with a new global icon expected to launch in India soon.

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Hyundai Motor India, one of the leading passenger vehicle manufacturers, has launched a new variant – S AMT – for the Hyundai Aura sedan at INR 807,700 (ex-showroom).

Powered by 1.2-litre Kappa petrol engine, the Hyundai Aura AMT variant is equipped with Electronic Stability Control (ESC), hill start assist control (HAC), LED daytime running lamps (DRLs), 6 airbags, Tyre Pressure Monitoring System (TPMS) in the highline version and outside rear view mirror with electric folding and turn indicators, thus making the popular offering more attractive.

Tarun Garg, Whole-Time Director and Chief Operating Officer, Hyundai Motor India, said, “At HMIL, we are committed to making smart mobility accessible to a wider set of customers. The introduction of advanced AMT transmission in Hyundai AURA S AMT reflects our continuous efforts to democratise technology and enhance convenience for customers. With this introduction, we aim to redefine the value proposition in the entry segment by offering superior comfort, safety, performance and convenience at an affordable price.”

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Japanese auto major Nissan Motor Co has secured around USD 6 billion through long-term bonds, which will support its medium to long-term strategies.

The company shared that the funding raised through bond issuance was oversubscribed, which confirms investor confidence in the Re:Nissan recovery plan. The funds have been raised for longer tenors (4-year to 10-year tenors).

Nissan shared that it intends to use the net proceeds raised through the US dollar and euro offerings for general corporate purposes and upcoming bond maturities, including those in fiscal 2025.

Furthermore, the net proceeds from the convertible bonds are intended to be used by fiscal year 2030 for investments in new products and technologies such as electrification and software defined vehicles (SDV).

The Japanese automaker aims to strengthen its financing capabilities and maintain strong liquidity in its automotive business to support the goals in Re:Nissan.

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