Skoda sells the Kylaq in India for the equivalent of just €6.8K / $7.9K. Powering the small SUV is a 1.0-liter turbocharged three-cylinder. It’s based on the Volkswagen Group’s budget MQB-A0 platform. With Chinese brands undercutting legacy Europeans on price month after month, the VW Group is running out of easy answers, but one of them might already be sitting on a production line in Pune. Skoda’s entry-level Kylaq, built and sold in India, could be exported to Europe and slot in as one of the region’s cheapest new cars. With the Elroq and Enyaq already pulling strong numbers, the smaller Kylaq looks like the natural plug for the bottom of the range. Read: Skoda Kylaq Is A $9,400 Baby SUV For The Masses The Kylaq broke cover in late 2024 and sells in India for just 759,000 rupees, roughly €6,800 ($7,900) at current exchange rates. It wouldn’t land in Europe at anything close to that figure, but it would still come in well under the Fabia, Skoda’s current entry point at just under €20,000 ($23,300), and that gap is exactly what’s drawing the boardroom’s attention. “If you look at the Fabia and squeeze everything out, you get below €20,000,” Skoda chief executive Klaus Zellmer 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 has been an instant hit in India. As of January this year, more than 50,000 had been sold locally, helping to double the VW Group’s Indian sales to 70,600 units in 2025. It rides on the VW Group’s MQB-A0 budget architecture, developed specifically to take on rivals from Hyundai and Maruti Suzuki in the local market. Buyers Can’t Get Enough Of The Kylaq Admittedly, the mini-SUV isn’t particularly exciting. Power comes from a 1.0-liter turbocharged three-cylinder making 113 hp and 131 lb-ft (178 Nm) of torque, paired with either a six-speed manual or an optional automatic. Still, for a crossover measuring just 3,995 mm (157.2 inches) long, shorter even than the Fabia hatchback, the engine has clearly proven adequate for Indian buyers. If Skoda is to sell the model in Europe, it will need to homologate it for local regulations and offset the emissions produced by the three-cylinder by ramping up sales of its electric and plug-in hybrid models, or risk failing to comply with emissions laws. As it stands, the all-electric Elroq is among Europe’s best-selling EVs, only trailing the Tesla Model Y with 94,106 sold last year. The electric Enyaq is also popular, with more than 78,000 sold in Europe throughout 2025.