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Škoda India eyes volume growth: plugs gaps, revives Octavia RS for niche zealots

Rohit Paradkar Updated: September 25, 2025, 11:54 AM IST

Škoda is expanding its network in India and bringing back the icon - the Octavia RS - as its halo product

When Škoda Auto India shared its mid?2025 progress with the media today, the message was loud and clear: this is not just about incremental growth, but about tightening coverage across segments, reinforcing depth in smaller towns, and reviving halo appeal.

Škoda says it has sold 46,616 units so far in 2025 (January through August), of which 30,000+ units are the Kylaq alone. That suggests their sub?4m SUV is carrying a large share of volume as they hoped it would.

What this reveals is the balancing act the brand is playing: covering mainstream, aspirational, and premium segments. The range now stretches from the Kylaq at the more accessible end, up to Kodiaq in the higher echelons.

To support this breadth, Škoda claims 310+ touchpoints nationwide. The key push now is in Tier?2 and Tier?3 cities, not just metros. Indeed, much of the remaining market growth lies there, so expanding presence into emerging geographies is a logical bet.

One of the more interesting moves is the launch of the Kodiaq Lounge, a five-seater variant positioned as a more "accessible" entry into the Kodiaq family. The Lounge variant would help fill the gap between the mainstream SUVs and the high-end seven-seater Kodiaq. The automaker suggests this move leverages the benefits under GST 2.0 just like its other models.

Meanwhile, the Kushaq and Slavia now start (effectively) from the ~?10 lakh mark, covering one of the most competitive and volume-sensitive segments in India. The Kodiaq Lounge, accordingly, is pitched to attract buyers who want premium cachet without paying for the full 7?seater kit.

The Octavia RS comeback: gamble or branding anchor?

Perhaps the most attention-grabbing announcement was the revival of the Octavia, in particular the Octavia RS. The Octavia first entered India in 2000, marking the start of Škoda's innings here. Now, to mark the 25th anniversary, Škoda says it will launch the Octavia RS in India on 6 October. Pricing is to be revealed on 17 October and deliveries will start soon after.

But this won't be a mass-market model. Only 100 units have been allocated for 2025. Depending on demand, that may increase in future years. Sales will be conducted online, and the model is expected to be offered in one variant/spec only.

Because of regulations under GSR 870 rule, carmakers in India can import a bouquet of different model (up to 2,500 units every year) as long as the car matches either the Japanese or UK spec models to the last nut and bolt. Škoda says India will get the UK?spec car, imported as a CBU from the Czech Republic. The UK spec (and by extension the Indian car) misses out on the DCC (Dynamic Chassis Control) in its kit.

The Škoda Octavia RS pairs a 2.0-litre turbo-petrol engine with a 7-speed DSG dual-clutch gearbox, sending 245 PS and 370 Nm to the front wheels. It clocks 0–100 km/h in about 6.7 seconds and tops out at an electronically limited 250 km/h, putting it squarely in hot-hatch territory but wrapped in a practical five-door saloon body. At just over 4.7 metres long, it's roomy enough for family duties yet sharp enough in stance to look the part, while the lowered suspension, sportier steering calibration and optional adaptive dampers make sure the RS badge isn't just there for show.

Škoda argues that though the sedan market in India has been shrinking, the Octavia RS occupies a niche of its own and shouldn't be lumped in with other sedans. In that sense, the revived model is less a volume play and more a branding/halo product.

For the exclusive OVERDRIVE review of the Octavia RS click here

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