Skoda's entry-level Kylaq, built in Pune, India, may soon be exported to Europe.
The small SUV sells for just 759,000 rupees (around €6,800 or $7,900) in its home market, and could become one of the cheapest new cars in Europe if the plan moves forward.
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The Kylaq is based on the Volkswagen Group's MQB-A0 budget platform.
It is powered by a 1.0-liter turbocharged three-cylinder engine producing 113 hp and 131 lb-ft of torque, paired with a six-speed manual or optional automatic transmission.
A Massive Price Gap
Skoda CEO Klaus Zellmer acknowledged the potential.
"If you look at the Fabia and squeeze everything out, you get below €20,000," he told Auto News.
"If you look at the price of a Kylaq, there is a massive gap.
There is a business rationale that you can challenge and see whether that makes sense."
The Kylaq would not land in Europe at its Indian price, but it would still be significantly cheaper than the Fabia, Skoda's current entry point at just under €20,000 ($23,300).
The model has been a success in India.
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As of January 2025, more than 50,000 units had been sold locally, helping double the VW Group's Indian sales to 70,600 units in 2025.
If Skoda decides to sell the Kylaq in Europe, it will need to homologate the vehicle for local regulations.
The company must also offset emissions from the three-cylinder engine by increasing sales of its electric and plug-in hybrid models to comply with European emissions laws.
Skoda's electric lineup is already performing well.
The all-electric Elroq was among Europe's best-selling EVs in 2025, with 94,106 units sold, trailing only the Tesla Model Y.
The Enyaq also sold over 78,000 units in Europe last year.
The Kylaq measures just 3,995 mm (157.2 inches) long, making it shorter than the Fabia hatchback.
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Despite its compact size, the engine has proven adequate for Indian buyers, and the SUV could fill a gap at the bottom of Skoda's European range.
