Automatic cars are rapidly gaining traction among first-time buyers, with automatics now accounting for over half of Skoda Auto India sales. The shift, led by Tier-2 and Tier-3 demand and the success of the Kylaq SUV, signals changing consumer preferences in India’s entry-premium segment.
First-time car buyers are increasingly opting for automatic transmissions, helping push automatic variants to more than half of Skoda Auto India’s sales and pointing at a shift in consumer preferences in the country’s entry-premium car segment.
“A significant portion of our recent growth is coming from first-time buyers, especially in Tier-2 and Tier-3 cities,” according to Ashish Gupta, Brand director, Skoda Auto India. “For many of them, convenience and ease of driving are key factors, which are reflected in the rising preference for automatic transmissions.”
Skoda Auto India’s total sales
Automatics accounted for about 55% of Skoda Auto India’s total sales in 2025, with the share crossing 60% in the first two months of 2026, reflecting growing demand for convenience among new buyers entering the market.
The trend is being led by the Kylaq compact SUV, which has emerged as the company’s largest volume driver. The model crossed 50,000 units within its first year of sales, with most buyers opting for automatic variants.
Significantly, around 60% of Kylaq buyers are first-time car owners, suggesting that many customers are choosing automatic gearboxes from their very first vehicle rather than upgrading from manual transmissions later.
Strongest-ever annual sales in 2025
As far as sales go, Skoda Auto India recorded its strongest-ever annual sales in 2025, selling 72,665 units, a 107% increase over the previous year, elevating India to the fourth-largest global market for the Czech carmaker. The brand has witnessed average monthly sales of around 6,000 units in the first two months of 2026.
High localisation levels of 90–95% in models priced below ₹20 lakh have helped the company maintain competitive pricing while scaling volumes. Exchange penetration currently stands at 27%, indicating that a large share of demand is coming from incremental buyers rather than replacement purchases further underlining the role of first-time customers in shaping Skoda’s evolving product and transmission mix in India.
The company is also refreshing its India 2.0 portfolio, with the Kushaq SUV set to receive a major update later this month, while the Slavia sedan is expected to undergo similar changes later in the year.
Alongside product updates, Skoda has been expanding its reach beyond metropolitan markets. Its sales and service network now comprises over 325 customer touchpoints across 183 cities, with more than 86% of recent additions located in Tier-2 and Tier-3 centres, aligning with the company’s strategy of tapping emerging demand in smaller cities.