Initially Skoda Auto will develop the MQB A0 platform with a focus on India. In the second phase, the company will explore exporting vehicles manufactured in India
A year after calling off collaboration with Tata Motors, Volkswagen Group has announced over 1 billion euros (Rs 7,900 crore) investment in the country between 2019 and 2021.
Volkswagen Group, which is reviving its fortunes in India through subsidiary Skoda Auto, will set up a new product line based on localisation of its successful MQB A0 platform with a special focus on compact SUVs.
Skoda Auto's CEO Bernhard Maier termed the revival plan to be "ambitious but achievable". He said with the implementation of the project, which is the part of business strategy christened 'India 2.0', the management aims to see the combined market share of Skoda and Volkswagen brand touching 5%.
Company officials said initially Skoda Auto will develop the MQB A0 platform with a focus on India (MQB-A0-IN). In the second phase, the company will explore exporting vehicles manufactured in India. Skoda and Volkswagen are expected to develop several products based on this platform. The model campaign will begin in 2020 with a mid-sized SUV.
As part of the project, Skoda Auto will set up an engineering centre and create around 4,000- 5,000 jobs.
Gurpratap Boparai, MD, Skoda Auto (India), said, "We will manufacture the new products on the localised MQB A0 platform, which already fulfils the stricter emission and safety standards that are expected to come into force in India in 2020."
The Volkswagen Group has five passenger car brands in India – Audi, Lamborghini, Porsche, Skoda, and Volkswagen. The Pune Plant has a manufacturing capacity of 200,000 cars per year (maximum in three-shift system) and is currently manufacturing Volkswagen Polo, Ameo and Vento and Skoda Rapid. The Aurangabad Plant assembles various premium and luxury models of Audi, KODA and Volkswagen sold in India and has an annual capacity of approximately 89,000.
The development is part of the new global strategy adopted by Volkswagen Group, wherein different global markets will be led by a group company. For example, India, which is third fastest growing automotive market in the world along with Russia and a few other countries will be led by Skoda, China and the US will have Volkswagen as its driving engine. Middle-East and Southeast Asia would be the responsibility of Audi while North Africa will see Spanish car maker Seat taking the guard. At the global level, Skoda Auto has plans to launch 19 new cars apart from 10 all-electric ones. The company will invest around 2 billion euros in e-mobility globally.
Skoda Auto and Tata Motors had called off their collaboration in August last year, hardly five months after signing a memorandum of understanding for collaborating on the platform and technology sharing.
Both companies said the partnership was not resulting in any technical or the economic synergies desired by both the parties.
BETTING BIG
- Initially Skoda Auto will develop the MQB A0 platform with a focus on India. In the second phase, the company will explore exporting vehicles manufactured in India
- 5% Share VW is eyeing in India market
- 2 lakh capacity of its Pune plant
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
 "Volkswagen Group")
){kind=small}
){kind=small}
){kind=small}
){kind=small}
)
){kind=small}
){kind=small}
)
)
)
)
)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}