New Skoda Compact SUV Set For February 27 Announcement

Skoda India set to reveal new Compact SUV plans on February 27; Reports

Having established a solid volume base in India with the Kushaq and Slavia, two mainstream models from Skoda Auto as part of the Volkswagen Group’s ‘India 2.0’ project, the Czech carmaker is now gearing up to enter the compact SUV segment in the country. Skoda’s global management will visit India later this month to announce the company’s plans and market expansion strategy.

Skoda’s New Project For India

Source: Motorbeam

The compact SUV project, internally known as ‘India 2.5’, marks Skoda’s return to the sub-4-metre segment since the discontinuation of the Fabia in 2013. This compact SUV will share the same MQB-A0 (IN) platform as the Slavia and its VW counterparts, the Taigun and Virtus. Benefiting from the lower 28 percent GST slab reserved for ‘small cars’, the Skoda compact SUV might pack a 110hp, 1-litre TSI engine, as opposed to the 1.5 TSI used in the ‘India 2.0’ cars from VW and Skoda.

Anticipated to hit showrooms around March 2025, the compact SUV’s launch has been delayed due to commercial feasibility challenges with the ‘India 2.5’ project. Despite initial setbacks, Skoda has revived the project with a renewed management approach.

Skoda to go alone without VW

Source: Skoda

However, Volkswagen will not be part of this compact SUV project, as the brand shifts its focus towards EVs. Skoda faces the challenge of achieving economies of scale without VW’s collaboration, but shared parts with the India 2.0 cars and a strong export focus are expected to aid in this regard.

The green signal for the ‘India 2.5’ project means that Skoda Auto Volkswagen will invest fresh capital into its India operations. The company aims for an annual volume of over 90,000 units to cater to both domestic and export markets, including Southeast Asia, the Middle East, the Commonwealth of Independent States, and North Africa.

In the Indian market, the compact SUV will compete with popular models like the Maruti Suzuki Brezza, Tata Nexon, and Hyundai Venue. This segment has become significant, representing over 25 percent of the total industry volumes by the end of 2023 in India’s fast-growing passenger vehicle market.

Also read: Mahindra and VW Forge Strategic Partnership for Its Future EV Platform

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