While Skoda-Volkswagen have partnered for India 2.0 strategy, Skoda will be going solo for the sub-4-meter compact SUV project
Skoda-VW India 2.0 plan has delivered good results, as evident with bestsellers such as Kushaq/Taigun and Slavia/Virtus. Going forward, Skoda will be targeting the highly competitive sub-4-meter compact SUV segment. Skoda sub-compact SUV will take on rivals such as Maruti Brezza, Tata Nexon, Hyundai Venue, Kia Sonet and Mahindra XUV300.
Skoda to announce its new SUV on 27th Feb?
More details about the upcoming sub-4-meter SUV will be announced at the upcoming Skoda India Event on 27th February. Updates about the company’s expansion plans including new EV launches are also likely. The event will be attended by Skoda’s top global management. Enthusiasts can expect some exciting news on 27th Feb.
Skoda’s new sub-compact SUV will be based on the MQB-A0 (IN) platform that can be seen with Kushaq / Taigun and Slavia / Virtus. It will be part of the company’s India 2.5 project. Launch of this new sub 4m SUV will help Skoda boost sales, which have been on a decline in the past few months. Skoda sub-compact SUV marks a major change in strategy, as the last sub-4-meter model produced by the company was Fabia. It was discontinued in 2013. Skoda new sub-4-meter compact SUV is expected to be available for sale by March 2025.
Skoda sub-4-meter SUV performance
To take on popular rivals, Skoda will have to launch the new SUV at a competitive price point. Can be done with tax benefits, applicable on sub-4-meter cars that utilize engines with capacity of less than 1.2-litres. Apparently, Skoda sub-4-meter SUV will be using the 1.0-litre TSI petrol engine. It generates 115 PS of max power and 178 Nm of peak torque. Transmission choices include 6-speed manual and 6-speed AT. For Kushaq, Skoda also offers the 1.5-litre TSI petrol engine. It makes 150 PS and 250 Nm. Transmission choices include 6-speed manual and 7-speed DSG.
Volkswagen to focus on EVs
While the Kushaq / Taigun and Slavia / Virtus pairs have been successful, Volkswagen won’t be joining Skoda in the sub-4-meter SUV project. Volkswagen has decided to focus exclusively on EVs and won’t be launching any new ICE SUVs. Even in the case of Skoda, the sub-4-meter SUV project has been delayed by almost a year. There was a time when the project was close to getting shelved. However, things are back on track with Skoda’s renewed plans for the Indian market.
For the India 2.5 project, Skoda-Volkswagen may not need to infuse additional funds. That’s because funds worth USD 1 billion are still available from the India 2.0 project. The same can be used for the India 2.5 project.
Focus on export markets
With Skoda going solo for the sub-4-meter SUV project, reaching economies of scale can be a challenge. To overcome such limitations, Skoda will focus aggressively on export markets. Skoda will be introducing the new sub-4-meter SUV across overseas locations such as the Middle East, Southeast Asia, North Africa and the Commonwealth of Independent States. Around 90,000 units are planned to be manufactured per year to cater to both domestic and export markets.
While the sub-4-meter compact SUV segment already looks congested, it has registered strong growth in recent years. If Skoda can come up with a good product, it should be able to create a decent space for itself in this segment. For CY2023, the sub-4-meter SUV segment accounted for 25% of the overall PV sales volumes in India.
