Skoda Auto has its roots in Czech Republic, which became a wholly owned subsidiary of the German automobile manufacturer, Volkswagen in 2000. The company is Czech Republic's largest revenue generator which counts for around 10 percent of the total countries exports. In 1895, Vaclav Laurin and bookseller, Vaclav Klement initiated to manufacture their first bicycle with a new brand name "Slavia".

The companies progress was remarkable and in 1905 they unveiled there first motorcycle which was equipped with a V-2 engine. In 1925, the company merged with Skoda which was a Pilsen Industrial Firm. With the merging of Laurin and Klement's company with Skoda, the production plant of the auto-major was moved to Czech town, Mlada Boleslav. During the First World War, the company was facing tough time but soon after the end of World War I, things became favorable for Skoda.

At the time of Second World War, the company was acquired by Hermann-Goring-Werke Group. The production of Skoda products was passed on in the hands of German military effort. At the time of war, the Mlada Boleslav facility started producing weapons and heavy vehicles. The most impressive vehicle from this auto-brand was Skoda RSO-Radschlepper OST, which was designed by the founder of Porsche Motors, Mr. Ferdinand Porsche.

Skoda had an outstanding time between the 60s and 80s as its vehicles bagged many races and also, the quality of their production highly appreciated in the auto-market. The same models were used even in late 80s which won the titles against then highly featured competing cars. In 1987, the company brought in "the Favorit" model which was a front wheel drive hatchback of the time and gained a lot of popularity amongst the enthusiasts. Due to fall of communalism, most of the industries in Czechoslovakia were privatized. For Skoda, Volkswagen was chosen as the most suitable foreign partner. On 9th December, 1990, Skoda was emerged in Volkswagen by selling its 30 percent stake, thus Skoda became the fourth company, which Volkswagen acquired. On 30th May, 2000, Volkswagen purchased 100 percent stake of Skoda. In the same year, Skoda revealed its first hatchback in the domestic market, the Fabia, which is generated good sales numbers.

Today, Skoda is ranked on top in terms of its high tech features and safety standards. It caters 4 vehicles in the domestic market; the Fabia, the New Laura, the Superb and the Yeti. The manufacturing facility of Skoda is based in Aurangabad, Maharstra, from where it supplies its products across the nation.