Skoda to re-engineer Volkswagen’s MQB platform to spawn budget cars; aims to manufacture around 5 lakh cars annually
Skoda is aiming to grab 5% market share in India with low-cost cars. For this, the Volkswagen owned Czech car brand is relying on the low-cost ‘Eco’ platform that is nothing but a reengineered version of the MQB architecture. The budget focused products will help the brand to increase the market share by luring more buyers and this ‘Eco’ platform will be shared by both Volkswagen and Skoda.
The budget cars are expected to start hitting the market from 2020. Skoda also reveals that the new low-cost platform will not only spawn cars for domestic market, but the brand will also export a large number of made-in-India budget cars to overseas markets, which will certainly boost the Make-in-India initiative.
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As Skoda says, it aims to produce 4 lakh to 5 lakh units per annum in the country and a large number of these vehicles will be exported to overseas markets. Also, the company plans to sell its cars in 125 countries by 2025, compared to its current sales network in 102 countries across the world.
Few months back, Volkswagen signed MoU with Tata Motors for technical partnership. Under this, the two auto majors were supposed to develop low-cost platform and share technologies. Skoda was given responsibility to work with Tata on behalf of Volkswagen AG. However, as it seems, the two sides have decided to walk on their own and this is why, Skoda is developing its own low-cost platform for the future products.
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While both Skoda and Volkswagen are betting big on the low-cost platform based budget car, they are not keen to tap on the end of the low cost car segment. Despite being interested in rolling out low-cost cars to grab more sales number, both the automakers are keen to save their affordable premium car brand identity. With the Indian buyers, specially the new age customers showing more interest towards premium cars, Skoda could see good fortune with its upcoming budget car.
Source: Autocar India