Skoda Auto is exploring a SUV-style compact car that will mark its re-entry into the sub 4-metre segment which it had renounced nearly a decade ago. The Czech car brand is also looking to bring a small city-centric electric car to India that will be produced in India built using locally procured parts.

These new initiatives will be part of Volkswagen’s new investment cycle titled internally as India 2.5. The German auto giant’s India 2.0 programme saw investments of €1 billion (over ₹8000 crore) which included fine tuning one of its global vehicle platforms and launch of a series of new models under both Volkswagen and Skoda Auto brands.

Speaking to BusinessLine, Thomas Schaefer, chief executive of Skoda Auto who will take over as head of Volkswagen from April 1, said, “We will probably not look at a hatch but more like a SUV/CUV kind of body shape. Hatch is going out of fashion. Certain body shapes have disappeared from certain areas of the world. To reinvest into this (hatchback) is not a great idea. But the sub-4-metre segment is a very important segment in India, we will find a solution to this.”

2 models in past one year

In the past one year, Skoda Auto launched two new models – Kushaq and Slavia – in India. Volkswagen followed with the launch of Taigun and Virtus. The four new models have heralded a new beginning for the Germany headquartered company in India where some of the biggest auto companies of the world like General Motors and Ford have struggled before their eventual exit.

“We are looking at the next level; the next vehicle we need to bring. We have four cars in the market already but you cannot build them for the next ten years and bring nothing in between. We are looking at least one coming in and that will be the next investment cycle and that will be called India 2.5. It’s a bit early to talk about the actual investment under that program,” Schaefer added.

Volkswagen (VW)has acknowledged India’s enthusiasm towards electric cars. The recent investments in the electric vehicle segment from Tata Motors and Suzuki Motor Corporation has not gone unnoticed. Skoda and VW are also looking to bring EVs to India and are jointly working on this plan.

Fully imported model

To start with, Skoda will bring the Enyaq, an electric SUV, to India as a fully imported model. Though this model will be priced at a premium, it will be launched to test the waters, before the group plans to get more EVs to India but at a more affordable pricing.

“We need more models below the Enyaq; in the mass market. We are putting three more models below the Envaq. We are starting with Europe but if the demand picks up in India and there is any indication of it, then yes, we will bring them to India as well. There will be at least one small car based on the same platform. It will be slightly bigger than the ID Life concept showcased by VW. It could be the vehicle that could be used in India,” Schaefer added.