European car companies step on gas for a footing in India

Mumbai: Czech carmaker Skoda Auto’s India unit is targeting 2026 sales of more than 100,000 vehicles, which will be more than twice its annual sales in recent years.

That number may still seem small when compared with the sales volume of Maruti Suzuki, the local market leader that sells one and a half times as many cars and SUVs each month in India. But in a market where European automakers have long been pushed to the sidelines by their Japanese, Korean and local rivals, the Skoda target is a formidable one.

Skoda and other European mass-market brands like Volkswagen, Renault and Citroen are trying to carve out a space for themselves in the crowded but fast-growing Indian market through strategic positioning and niche offerings with premium features, latest technology and competitive pricing.

“The Indian automotive landscape is experiencing nuanced shifts, even with Japanese brands holding a strong lead. These shifts signal growing opportunities for global players to respond to evolving consumer preferences,” said Ravi Bhatia, president at automotive consultancy Jato Dynamics.

Skoda is designing vehicles specifically for the Indian market, allowing it to introduce models that are affordable, feature-rich and targeting specific customer segments. The company and its German affiliate Volkswagen offer similar models.




Younger Customers in Focus
The company and its German affiliate Volkswagen offer similar models. Skoda's sub-four-metre Kylaq SUV is "aimed at attracting a new, younger audience to the brand by offering European technology at a price point that appeals to the masses", said Petr Janeba, brand director for Skoda Auto India. It took two years (2022-2023) for the company to sell over 100,000 cars in India, while it is now targeting that number consistently from 2026, Janeba said.

While European automakers are seeking to win over the Indian buyers, Japanese manufacturers continue to dominate with a 51.2% market share in India, led by Suzuki Motors-owned Maruti Suzuki. Indian automakers like Mahindra & Mahindra and Tata Motors have 25.4% of the market share, while Korean brands Kia and Hyundai have 19.1%. The remaining 4.3% is split among European and Chinese brands, show data from Jato Dynamics.

Maruti Suzuki, with a product lineup across all mass-market segments from compact cars to larger SUVs, sells nearly three times more cars than its closest competitor.

Tata Motors, which offers powertrain options including petrol, diesel, CNG, and electric, says its success lies in understanding and adapting to local customer demands. "Listening to our customers and adapting quickly is enabling us to further strengthen our position in the market," said Vivek Srivatsa, chief commercial officer at Tata Passenger Electric Mobility.

Meanwhile, Korean automaker Kia has been focusing on the younger, tech-savvy consumers who demand both aesthetics and functionality. Hardeep Singh Brar, Senior VP and Head of Sales & Marketing at Kia Motor India, notes that the brand’s design philosophy and customer-focused features have helped it differentiate itself in a competitive market. The Korean brand's investment in connected car features, has further helped it build a loyal customer base, Brar said.

As India’s car market evolves, the future competition will be defined by differentiation, according to industry executives. It is no longer just about price — it's about offering features, design and technology that align with consumer aspirations, they said.