Skoda’s new budget car would first launch in India followed by other emerging markets
Skoda is working on a low-cost car focusing on the emerging markets across the world and India could be the first market to receive the car. The new budget car is expected to launch here by 2020 and it is likely to play a major role in strengthening the Czech automaker’s presence in the country.
Apart from India, Skoda is also aiming to roll out the new low-cost car in other emerging markets like Brazil. Skoda’s parent group Volkswagen AG tied up with Indian auto major Tata Motors in an attempt to share the technical bits and therefore strengthen its presence in the domestic market. Skoda was given the responsibility to work with Tata on behalf of the German automobile group.
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As it appears, the partnership didn’t work well and Skoda is developing the low-cost car on its own. Despite Tata Motors kept trying to underpin the upcoming car with its Advanced Modular Platform (AMP), Skoda didn’t show interest fearing that it could cost the brand more to meet future crash test and emission norms.
Not only this low-cost car, Skoda is also nurturing the plan to launch several other models in domestic market. Previous reports suggested that Volkswagen group is developing a low-cost car for emerging markets that is being developed in China in association with VW’s local joint venture partner FAW. It is not sure, if the upcoming Skoda budget car is the same model or not.
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The range of cars from Volkswagen group focusing the emerging markets also includes an affordable compact SUV. As the compact SUVs and crossovers are ruling the global automobile market, the upcoming model could be a major step from the group to see significant sales boost. Also, this car could arrive in Indian market as well considering the high demand of SUVs among the domestic buyers.
Source: Automotive News