Archive · 19 Jul 2026
Skoda-VW India 2.0 Project Loses Momentum
Skoda and Volkswagen started a big project in India called India 2.0 in 2019.
They wanted to sell more cars and get 5% of the market by 2025.
They made new cars like the Kylaq SUV, which sold really well.
But even with the Kylaq's success, the company's overall sales are not growing as much as they hoped.
They only have 2.44% of the market now.
Experts say the cars are too expensive for Indian buyers, and the company needs to make more popular models like the Kylaq to compete with other big car companies in India.
Skoda-VW's India 2.0 project aimed for 5% market share by 2025 but only achieved 2.44% in FY26.
The Kylaq SUV was a success, selling 70,865 units and making up 63.5% of Skoda's sales since its launch.
Overall sales declined from 93,595 units in FY23 to 87,098 units in FY25.
Analysts attribute the slowdown to a competitive market and cars being over-engineered for the Indian market.
Volkswagen's models like the Virtus and Taigun are also seeing declining sales.
- Who
- Skoda Auto Volkswagen India
- What
- India 2.0 project losing momentum despite successful Kylaq SUV
- When
- FY26 (current), project started in FY19
- Where
- India
- Why
- Highly competitive market, product design mismatch, and over-engineering leading to higher prices
- Project Name
- India 2.0
- Investment
- 1 billion euros
- Original Market Share Goal
- 5% by 2025
- Current Market Share (FY26)
- 2.44%
- Kylaq Sales (since launch)
- 70,865 units
- Kylaq's Share of Skoda Sales
- 63.5%
- Total Passenger Vehicles Sold (FY25)
- 4.3 million