In a month marked by widespread hesitation among Indian car buyers many holding off for the freshly revealed GST reductions the automotive sector grappled with subdued demand. Skoda and Volkswagen, flagship marques under the Volkswagen Group umbrella, mirrored this trend but with contrasting fortunes. While Volkswagen grappled with a notable downturn, Skoda emerged as a rare bright spot, achieving the steepest year-on-year surge—up an impressive 79%—among volume-oriented automakers. Yet, in raw figures, Skoda’s footprint remains modest, dispatching 4,971 vehicles last month versus a mere 2,772 in August 2024.

Kylaq: The Compact Hero Saving Skoda’s Day

Skoda’s turnaround owes much to the plucky Kylaq, a sub-4-meter crossover that started reaching customers back in January. This entry-level offering accounted for 3,099 registrations, single-handedly offsetting slumps elsewhere. Without it, Skoda would have faced a sharp drop. Meanwhile, its homegrown staples faltered: the Kushaq SUV tumbled 47% to 789 deliveries (from 1,502), and the Slavia sedan dipped 10% to 1,008 units (down from 1,122).

The refreshed second-generation Kodiaq, now commanding a premium over its predecessor, struggled further, moving only 75 examples compared to 145 of the outgoing version—a 48% retreat. The Superb’s third iteration, once a niche CBU import with just three sales last year, has been shelved. A fourth-generation successor looms as another import, but delays tied to prospective India-EU trade deal perks mean it won’t grace lots until 2026 at the earliest.

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Volkswagen’s Slump: No Budget Option Bites Hard

Across the fence, Volkswagen endured steeper woes, its lineup lacking a sub-compact contender to lure price-sensitive shoppers. The Taigun SUV plunged 39% to 1,001 units (from 1,628), while the Virtus sedan eased 11% to 1,674 (versus 1,876). The Tiguan’s shift from a locally built second-gen to a costlier imported third-gen exacted a toll, with volumes cratering 89% to a scant 8 units from 73.

Brightening the ledger slightly was the Golf’s debut in hot GTI guise, adding 36 sales. Overall, Volkswagen clocked 2,719 deliveries in August 2025—a 24% erosion from the prior year’s 3,577.

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Broader Implications for the Duo’s Strategy

This bifurcated performance underscores a key divide: Skoda’s Kylaq gambit has injected vitality into its affordable segment play, cushioning blows from pricier flagships. Volkswagen, bereft of a similar low-end anchor, feels the pinch acutely in a market fixated on value amid economic jitters. As GST tweaks ripple through, both brands eye a rebound, but Skoda’s momentum hints at a more resilient path forward in India’s fiercely competitive arena.