Fresh off the launch of the Kushaq compact SUV, Skoda Auto India is now gearing up to introduce the Slavia compact sedan in the market in a few weeks from now. The MQB A0 IN platform is the company’s new platform underpinning both these models and has been specifically built for the Indian market, a space where Skoda has been operating for the past two decades. In fact, Skoda leads the charge for Volkswagen Group’s strategy here and the company is all set to bring a fresh investment from the headquarters to greenlight its next set of products.
The MQB A0 IN platform was made possible after a 1 Billion Euros investment from the Volkswagen Group under the India 2.0 strategy, and Skoda Auto India is now considering its next phase of investment and expansion in the domestic market. The development emerges from a recent report that quotes Thomas Schäfer, Chairman of the Board at Skoda Auto speaking about the same.
Speaking about future product plans, Schäfer said. “India is still in the mix. India, for me, is very important. It stays in the mix for the next investment cycle. India is a continuous story for you to stay in the game. And we believe that is the right thing to do. Our factory planning team on both sides in India and HQ are continuously working to strengthen our (production) capacity. We’ve built the factory for higher capacity. If there is an investment plan for the future, it’s better in India than in many places around the world. We see India as a focal point.”
The fresh round of investment for a new strategy dubbed India 2.5 see the automaker further establish Skoda as a prominent European brand in the market. While investment figures haven’t been disclosed, the report suggests that Skoda’s next offering for India will be a sub-4-metre SUV with plenty of potential for export volumes. Shafer also hinted that the company’s next set of products could also include locally-built electric vehicles with India as a base for exports.
Skoda’s confidence in India comes from a rather strong start to the India 2.0 strategy. The Skoda Kushaq has garnered over 18,000 bookings since its launch, which is also the case with its German sibling, the Volkswagen Taigun. That’s 36,000 orders and counting coming out of the VW Chakan plant where both cars are produced. Moreover, the buzz around Slavia is high as we approach the global debut on November 18. It replaces the Skoda Rapid that managed to pick up sales in the last year garnering a 10 per cent market share in the compact sedan segment.
It’s not just the products that have been the company’s focus. Skoda has been working to expand its sales and service network and aims to have about 150 dealerships active by the end of 2021. The number will substantially increase in 2022.
On the global front too, Skoda is responsible for the MQB A0 compact car platform for the VW Group in its international markets, and given its focus here, it only increases more possibilities and products for the domestic market. Shafer said that the Indian team will be working with South America, South Africa, Russia, among other regions to build common components for cars, which is great when it comes to establishing an export strategy.
On the EV front, Shafer said that the company is considering bringing the Enyaq electric SUV to India in 2022. The Enyaq though will arrive in limited numbers, a pure niche, and will be Skoda’s way of testing waters in the electrification space.
