After introducing the Skoda Kushaq, Volkswagen Group is now ready to launch the VW Taigun mid-sized SUV, a new Skoda ANB sedan and the new VW Virtus (Vento Replacement) in the country before the end of this financial year. A new media report claims that Volkswagen Group is now planning to enter the fast growing and highly-competitive sub-4 meter SUV segment.
The new compact SUV will be sold under the Skoda nameplate. It will rival the likes of Maruti Suzuki Vitara Brezza, Hyundai Venue, Kia Sonet and the Tata Nexon. Skoda has announced to invest more than 1 billion euros in the Indian market under its 2.0 plan. The report claims that the group has started working on a plan to make an India-specific sub-compact SUV. This model will be introduced to gain from lower tax for such vehicles.
The report claims that the project discussions are in the final stages. Internally called the project 2.5, the new compact SUV is reportedly to be launched in the second half of 2023. There are no plans to introduce Volkswagen derivative of this SUV. The company is looking to sell around 50,000 units per annum from the upcoming sub-compact SUV.
People close to the development said that the new Skoda Project 2.5 is likely to be funded from the billion euro investment the group has commited to in India. Thanks to the aggressive development and localisation levels, the VW Group has managed to save enough to fund development of this new SUV.
The upcoming Skoda compact SUV is expected to help Skoda and the VW Group to fully utilise their production plans and achieve higher volumes. The new compact SUV would be designed in Europe; however, the Indian R&D will ensure its execution with a deep localisation of over 95% in order to compete aggressively in the market.
The new Skoda compact SUV is expected to be based on the modified version of the MQB AO IN platform, which underpins the Kushaq. The new model is likely to be powered by a 1.0-litre 3-cylinder turbocharged petrol engine with manual and automatic gearbox options.
Source – ET Auto
