Skoda Auto India will sell its compact SUV Kylaq at a starting price of ₹7.89 lakh.

The company on Wednesday unveiled its sub-4-metre offering in the SUV segment, which will be launched at the Bharat Mobility Show in January next year.

The company will reveal all the trims and variants with prices next month when it opens the bookings. Deliveries will start after the formal debut on January 27.

Calling it a “democratisation of European technology on Indian roads”, Skoda Auto India brand director Petr Janeba said the company has entered the most competitive segment, the compact SUV, with competitive pricing with an aim to sell 100,000 units a year.

The company has achieved a localisation level of 76 per cent with the Kylaq, increasing its domestic supplier base.

“We plan to achieve a localisation of over 90 per cent,” said Janeba. The Kylaq will be a petrol-only model, solely offered with the Volkswagen group’s three-cylinder 1.0 TSI engine.

The Kylaq will be up against some strong rivals such as the Tata Nexon, Mahindra XUV 3XO, Maruti Brezza, Hyundai Venue and Kia Sonet. The price band for all these compact SUVs range from ₹7.7 lakh to ₹8.3 lakh.

Klaus Zellmer, chairman and CEO of Skoda Auto, said: “While Europe is a key market for Skoda, the company is looking for broader international foundations and India is a key pillar of that. The country is not just a promising market but also an export hub for us to surrounding markets and beyond.”