Skoda Auto India has recently launched the Skoda Kylaq, a new compact SUV positioned below the Skoda Kushaq. This move has sparked discussions about potential sales cannibalization and whether both models can coexist in the market.
Market Positioning and Pricing
The Kylaq is priced at INR 7.89 lakh (ex-showroom), making it a more affordable option compared to the Kushaq, which starts at INR 10.89 lakh (ex-showroom). Both SUVs share the same MQB-A0-IN platform, powertrain options, and many technological features. However, the Kylaq is designed to cater to a more price-sensitive segment, offering similar technology and features at a lower price point.
Potential for Sales Cannibalization
Skoda India’s Brand Director, Petr Janeba, acknowledges that the Kylaq might attract buyers who would have otherwise considered the Kushaq. He states, “There can be some downgraders from the Kushaq. Someone who does not need the space and is more price sensitive will go for the Kylaq because the rest of the technology and package is all there.” This indicates a potential for sales cannibalization within the brand.
Coexistence Strategy
Despite the potential for cannibalization, Janeba believes that the introduction of the Kylaq is actually beneficial for Skoda. He explains, “Giving customers the technology and features from a higher segment is a win for them. For the brand, the win is that we increase our scale as it shares the platform with the Kushaq and we are also able to localize deeper.” This strategy aims to create a better value proposition for both models, allowing them to coexist in the market.
Future Plans
To further differentiate the two models, Skoda plans to give the Kushaq a facelift in 2025. This update will help create a distinct value proposition for the Kushaq, ensuring that it remains competitive in the market. Janeba adds, “There are a lot of things which the Kushaq has that the Kylaq does not, or has it differently. We will try to create a different value proposition with things like the warranty and cost of ownership.”
Also Read: Skoda announces new Kylaq SUV in India priced at INR 7.89 lakh