Skoda’s US entry has been reportedly delayed due to its low-cost car project for Indian market
Skoda’s entry to US market has been pushed back in order to priorities the India-spec low-cost car project. As we have reported earlier, Volkswagen has tasked the Czech brand with leading the development of the Eco platform based budget friendly premium car. With this project in hand, the automaker is delaying its US entry, as it doesn’t want to make decision in hurry.
Initially, Volkswagen partnered with Tata Motors to develop a low cost car for the Indian market. But, the partnership between these two auto majors didn’t work as it was expected to. Therefore, Volkswagen AG decided to walk on its own and it tasked Skoda for the low-cost car project.
Also read: Skoda To Launch More SUVs In India
Skoda is currently working on the Eco platform that is nothing but a modified version of the Volkswagen MQB A0 architecture. This new low-cost platform will spawn out several cars for both VW and Skoda. As Volkswagen and Skoda are eying greater market share in the highly competitive Indian market, this Eco architecture is going to play a key role in that strategy.
While the partnership with Tata Motors wasn’t successful one, Skoda is not ruling out a future tie up with the homegrown auto major eyeing 5% market share by 2025. The Czech automaker is aiming to focus on the SUV segment of Indian market. The brand is expected to roll out a budget focused premium compact SUV in the domestic market that will challenge Hyundai Creta. Also, it plans to launch a new sedan and a hatchback by 2022.
Apart from selling cars in domestic market, Skoda is also attempting to export vehicles from here in a large number. In that case, India is going to be the production hub for Skoda’s low-cost car. As the brand says, it will produce around 4 lakh units of the budget focused model every year and a large chunk of that will be shipped to the overseas markets.