VW subsidiary Skoda will enter the Indian market

7. February 2019

With a new strategy and the “India 2.0” project, the Volkswagen Group wants to benefit from the growth in the world’s third-largest car market with its subsidiary Skoda India. Under the leadership of the Indian spin-off of Skoda, eight new models are to be developed and produced in the next 18 months, four of them exclusively for the Indian market. It should be an SUV and a sedan, which are each sold under the name Volkswagen and Skoda. According to unconfirmed sources, the basis of the vehicles is the Volkswagen MQB platform, the SUV could also be the Volkswagen T-Cross. It is planned to launch a new model every six months, with the sales launch planned for March 2021. The project “India 2.0” also includes the expansion of India as a location for export. Four models with left-hand drive vehicles, two each from Volkswagen and Skoda, are to be produced from 2022 onwards.

Volkswagen has just recently completed its first meeting with automotive suppliers in India. High-ranking Volkswagen representatives announced that they see high growth potential in the Indian automotive market and therefore it is important to define a long-term strategy and to have a good position in the market. One of India 2.0’s main goals is the creation of profitable and cost-effective manufacturing facilities. The project has an investment volume of approximately $ 1.13 billion, and one of the key pillars of the strategy is the establishment of a new development and design center in Pune, India in late 2019. For a competitive price of the vehicles, the platform MQB A0 IN will be developed with a local supplier share of 90 percent.

With their strategy, Volkswagen and Skoda hope to become a mass producer in India with a target of 5 percent by 2025. In this context, the production capacities of the existing plants are to be continuously expanded over the next few years. In addition, the Volkswagen Group is planning new alliances and partnerships in the Indian automotive market in order to be more innovative in the market.

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