VW okays India 2.0 project; Skoda Auto to take charge

Skoda Auto will take the lead for the Volkswagen group in the India 2.0 project. The first Skoda model based on the MQB platform will debut in 2020.

“Volkswagen Group has tasked us with this responsibility, thereby highlighting the level of trust that the management places in the expertise of the Skoda team,” said Skoda CEO Bernhard Maier in a press statement.

The project will be headed by Gurpratap Boparai, Managing Director of Skoda Auto India. All models designed and produced locally in India will be based on VW group’s MQB platform.

With the India 2.0 project, Skoda will assume responsibility for the sub-compact MQB A0 platform, initially with a focus on India (MQB-A0-IN). “We are firmly convinced that, after one-and-a-half years of intensive work with VW, we have a suitable approach to bring the right vehicles into the Indian market,” added Maier.

Cost-effective platform

According to the statement, preparations for the India-based development and production of the new, technologically pioneering volume models for the Skoda and VW brands are already on in full swing.

With the MQB, costs are lowered and production times reduced by standardising components, dimensions and production processes. The MQB also increases flexibility when developing new vehicles.

The go-ahead for India 2.0 is welcome news to the VW group, which was initially in talks with Tata Motors to work on the latter’s advanced modular platform. The intent to explore a joint alliance was made public at the Geneva Motor Show in March last year and it looked as if some exciting developments were in store.

However, what seemed like a win-win deal was shelved less than four months later as the two companies did not find any strategic benefits accruing from this alliance. The VW group, led by Skoda, then decided to look at the possibility of optimising the MQB platform in terms of a cost structure that would fit in with a price-sensitive market like India.

With the first product due in 2020, it will be interesting to see how the market reacts to it. This period will also mark the onset of a new emissions era for India where Bharat Stage VI norms kick in. It is also likely to be a decade of interesting evolution for the country’s automobile industry where SUVs could lead the way.

Skoda, of course, is no stranger to India and its debut offering, Octavia, caught the eye of the market when it was first launched over 15 years ago. VW followed some years later by setting up a full-fledged production facility in Chakan, which complemented Skoda’s own assembly unit in Aurangabad.

Chakan plant gearing up

India 2.0 will see a flurry of activity in Chakan and if things go according to plan it could just mark the beginning of a resurgence for both Skoda and VW. Neither has made much headway in a market where Maruti Suzuki and Hyundai jointly account for over a two-thirds share.

Prior to the Tata Motors exploratory alliance, VW had globally joined hands with Suzuki Motor Corporation in 2009 as part of a equity cross-holding deal. At that point in time, it promised the moon and India would have been clearly on VW’s radar since this is a market where Suzuki has ruled the roost for decades.

However, nothing much came out eventually and it was not the happiest of partings for the two companies. Suzuki has now joined hands with Toyota for a new phase in India while the VW group will now look at rebooting its innings here with Skoda leading the way.

COMMENT NOW