The Indian automotive market is currently one of the fastest-growing in the world, and this trend strengthened further in 2025. Rising purchasing power, rapid urbanisation and an expanding middle class are making passenger cars an increasingly accessible and practical means of transport for millions of Indians. This development is clearly reflected in sales volumes, which recorded strong year-on-year growth throughout 2025. India has thus firmly established itself as one of the key global automotive markets shaping the future direction of the entire industry.

The structure of the Indian market has long been characterised by the strong dominance of a small number of brands, particularly those that have successfully adapted their products to local conditions in terms of price, vehicle size and operating costs. In 2025, Maruti Suzuki retained the largest market share, with a commanding lead and close to half of the total market. It is followed primarily by domestic manufacturers Mahindra and Tata Motors, each with around a 12% market share, benefiting from a deep understanding of local conditions. Other major players include Asian manufacturers such as Hyundai, Toyota and Kia, which have built strong positions through a combination of local production and well-tailored model portfolios. European brands have a smaller but gradually growing presence in India. Among them, the Škoda Auto Volkswagen India group holds the largest market share: in 2025 it sold 108,277 vehicles and, with a 2.42% market share, ranked as the seventh most successful automotive manufacturer in India. Another European brand to make it into the top ten best-selling manufacturers in India was Renault, with 36,420 vehicles sold.

Škoda Auto Doubles Its Sales

In this context, the sales performance of Škoda Auto deserves particular attention, as the brand recorded an exceptionally successful year in India in 2025. While 35,166 Škoda vehicles were sold in India in 2024, Škoda Auto reached a historic high of 70,665 vehicles sold in 2025. Škoda models thus accounted for a dominant share of the total sales of the Škoda Auto Volkswagen India group.

A key role was played by models developed specifically for the Indian market, especially in the compact sedan segment with the Slavia model and in the SUV segment with the Kylaq model. The Kylaq, whose sales began in 2025, became last year’s standout success. This compact SUV, with a retail price starting at ₹7.89 lakh found its way to 43,900 customers.

The importance of India for Škoda Auto has increased significantly in recent years. The Indian market has become the brand’s fourth-largest market worldwide, after the Czech Republic, Germany and the United Kingdom, and at the same time its largest market outside Europe.

Opportunities for Other Czech Companies

The growing automotive sector in India is also opening up significant opportunities for other Czech companies operating in the automotive industry. As vehicle production expands, demand is increasing for a wide range of components, technologies and services, from traditional mechanical parts to electronics, software and solutions related to electromobility and vehicle connectivity. A key framework for the entry of foreign suppliers is the Indian government’s “Make in India” initiative, which supports the localisation of production, the development of local supply chains and the transfer of know-how. For Czech companies, this means that long-term sustainable success depends on a willingness to invest in local production, build partnerships with Indian companies and adapt to the specific requirements of the market.

The Indian automotive market today represents not only a rapidly growing sales destination, but also a complex industrial ecosystem of global importance. The success of Škoda Auto demonstrates that even a European brand can succeed in this environment with the right strategy. For the Czech automotive industry and its suppliers, India thus offers one of the most promising opportunities for further international growth in the coming years.

One of the centres of the Indian automotive industry is the Pune metropolitan area in the state of Maharashtra, which hosts manufacturing plants of several automotive manufacturers. In addition to Škoda Auto Volkswagen, brands such as Mercedes, Tata, Mahindra and Jaguar Land Rover also operate factories in the vicinity of Pune. The proximity of Pune to Mumbai, India’s financial and economic hub, means that Czech companies interested in joining the supply chains of the Indian automotive industry can benefit from the services of the newly established Consulate General as well as the CzechTrade Mumbai office.