by Skoda Kylaq: Cheap Indian crossover could become a hit in Europe
Chinese brands are constantly lowering prices, and the Volkswagen Group is looking for ways to compete. One option could be the Skoda Kylaq, which is already being produced in India. This budget crossover could enter the European market and become one of the cheapest new cars in the region.
The Elroq and Enyaq models are already showing good results, so the smaller Kylaq seems like a natural addition to the bottom of the lineup.
Price and potential for Europe
The Kylaq debuted at the end of 2024 and is sold in India for 759,000 rupees, which at the current exchange rate is approximately 6,800 euros ($7,900). In Europe, the price will be significantly higher, but still much lower than the Fabia, which is Skoda’s current entry-level model with a price of around 20,000 euros ($23,300). It is this gap that is attracting the attention of the company’s management.
“If you look at the Fabia and squeeze everything out of it, you get a price below 20,000 euros,” Skoda CEO Klaus Zellmer told Auto News. “If you look at the price of the Kylaq, there is a huge gap between them. There is a business logic that can be checked to see if it makes sense.”
Success in India and technical specifications
The Kylaq became an instant hit in India. As of January this year, over 50,000 units had been sold there, helping to double VW Group’s sales in India to 70,600 cars in 2025. The crossover is built on the budget MQB-A0 architecture, developed specifically to compete with Hyundai and Maruti Suzuki in the local market.
Buyers can’t get enough of the Kylaq
It must be admitted that the mini-SUV is not impressive in terms of power. It is equipped with a 1.0-liter turbocharged three-cylinder engine producing 113 hp and a torque of 131 lb-ft (178 Nm), paired with a six-speed manual or an optional automatic. Nevertheless, for a crossover with a length of only 3,995 mm (157.2 inches), which is even shorter than the Fabia hatchback, the engine turned out to be quite sufficient for Indian buyers.
Challenges for the European market
If Skoda decides to sell the model in Europe, it will have to certify it according to local regulations and offset the emissions of the three-cylinder engine by increasing sales of electric and hybrid models to avoid violating emissions laws.
Currently, the fully electric Elroq is one of the most popular electric cars in Europe, second only to the Tesla Model Y with 94,106 units sold last year. The electric Enyaq is also in demand, with over 78,000 units sold in Europe in 2025.
Thus, the potential launch of the Kylaq in the European market could be a strategic move for Skoda, allowing it to fill the price niche between budget models and more expensive cars. However, success will depend on the company’s ability to adapt the car to strict European environmental standards and find a balance between an affordable price and the necessary certification costs. Given the popularity of the Elroq and Enyaq, Skoda has the potential to offset emissions, making this idea quite realistic.
