Skoda recently revealed the Kylaq compact SUV’s full price list, which ranges between Rs 7.89 lakh and Rs 14.40 lakh (ex-showroom, India). The Kylaq’s prices, unsurprisingly, have a reasonable overlap with that of the Kushaq, its elder sibling with which it shares the platform, most of the equipment and the 1.0-litre TSI engine.
Skoda, however, is keen to differentiate both models from each other. In a recent interaction with Autocar India, Petr Janeba, Skoda India’s brand director, confirmed that the company will make efforts to create a new value proposition for the Kushaq. To that end, Skoda is expected to introduce more affordable trims of the Kuhsaq with the 1.5-litre TSI engine.
“Currently, 85 percent of Kushaq’s sales are of the 1.0-litre variants. However, with the Kylaq now in the market, we can drive more volumes towards the 1.5-litre variants. In the future, Kushaq’s 1.0-litre variants could be around 65-70 percent of total sales,” said Janeba.
In an earlier interaction, Janeba admitted that there would be some cannibalisation, where the Kylaq could draw buyers away from the Kushaq. While additional volumes from the Kylaq will certainly add to economies of scale, Skoda will still have to keep itself relevant in the midsize SUV segment. And it doesn’t help that the Kushaq’s sales have been below expectations.
“There is something we can do with the features set on the Kushaq and the warranty structure. We will create a different value proposition to keep cannibalisation as low as possible,” said Janeba, adding that there must be a certain level of parity between these two products.
Skoda is also working on a mid-lifecycle update for the Kushaq, which will arrive in 2025. With newer features and cosmetic updates, the facelift will further help position the Kushaq differently from the Kylaq.
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