[volkman10]

Skoda 1.0 TSI engine receives E20 compliance from ARAI.

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[Pequod]

Originally Posted by volkman10

Skoda 1.0 TSI engine receives E20 compliance from ARAI.

Link:

Does this mean all cars already sold with the 1.0 TSI engine till date are also E20 fuel compatible?

My Virtus 1.0 TSI is May 2022 make, and if the engine is E20 compatible, that’s a huge relief!

[volkman10]

ARAI certifies Škoda Auto India vehicles E20 compliant

• Among the first few OEMs to receive E20 certification from an official body

• The 1.0 TSI manual and automatic have earned the certification

• The 1.5 TSI is undergoing tests; to earn certification by Q4 2024

• E20’s 20% ethanol to 80% petrol blend allows efficiencies in emissions, sustainability and circular economy

The 1.0 TSI:

The 1.0 TSI makes 85kW of power (115ps) and 178Nm of torque and is mated to a six-speed automatic or a six-speed manual. While the engine is available across variants in the Kushaq and the Slavia, the E20-compliant engine made its debut in the recently introduced Kushaq Onyx AT and will eventually make it to every 1.0 TSI Škoda to roll off the production line from Chakan, Pune.

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[volkman10]

Skoda will not over engineer its products for India. Will go the Mahindra way! European platform to be out and will piggyback on M&M

Will it pave way for the exit of the Skoda Auto VW India group eventually?



- Skoda Auto leadership in India for stake sale talks with M&M.

- Will bid adieu to German engineering, if the deal goes through

-M&M is keen on acquiring a 50% stake in Skoda Auto VW India at a valuation of around $1 bln.

-Mahindra has insisted on a 50% stake, similar to their former agreement with Ford. Otherwise, said one of the people involved, the deal is a non-starter.

-Skoda Auto Volkswagen Group's sales and marketing organization, which houses all of VW's global brands like Audi, Porsche, and Lamborghini, will be carved into a separate organization, outside the JV.

-The deal could have an immediate impact on the development of the next-gen Kushaq and Taigun. These were scheduled to be made on the VW Group’s MQB A0 37 platform, but the Czech carmaker is struggling to make them within the cost target and currently, there is a cost overuun of around 800–900 Euros.

-The European major could end up using Mahindra’s NFA for these models, while retaining its own engines.

-With this proposed alliance – the European carmaker may not have to invest on two different inhouse architectures – MQB A037 and the CMP 21. After the formation of the JV, Skoda Auto VW can use M&M’s NFA architecture for future ICE models, while setting apart CMP for locally produced EVs.

-With volumes from India 2.0 models far below internal expectations, the automaker has been forced to look for a partner to share investment and future risks. In this context, Skoda Auto Volkswagen has already signed an MoU with the Maharashtra State Government to invest Rs 15,000 crore in the state for future expansion.

-As for what impact all this could have on the next generation of Skoda’s sedans – Slavia and Virtus – there is still no clarity.

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[chakravorty]

Originally Posted by volkman10

These were scheduled to be made on the VW Group’s MQB A0 37 platform, but the Czech carmaker is struggling to make them within the cost target and currently, there is a cost overuun of around 800–900 Euros.

Cost overrun of 900 Euros? Seriously? 900 Euros is not even 1 lac rupees. Car manufacturers are increasing the price of cars by more than that amount every year anyways. Looks like Skoda / VW want to quit!

[DRPSREDDY]

Originally Posted by chakravorty

Cost overrun of 900 Euros? Seriously? 900 Euros is not even 1 lac rupees. Car manufacturers are increasing the price of cars by more than that amount every year anyways. Looks like Skoda / VW want to quit!

I am sure it is a typographical error. It should be 900 thousand Euros or 9 million Euros. 900 Euros is nothing to ponder about.

[thanixravindran]

Originally Posted by DRPSREDDY

I am sure it is a typographical error. It should be 900 thousand Euros or 9 million Euros. 900 Euros is nothing to ponder about.

Originally Posted by chakravorty

Cost overrun of 900 Euros? Seriously? 900 Euros is not even 1 lac rupees. Car manufacturers are increasing the price of cars by more than that amount every year anyways. Looks like Skoda / VW want to quit!

I believe you are referring to project cost overrun here which is not the case. My guess is the article talks about the product cost target which Skoda product engineering couldn't meet and is above by 900 EUR. This will directly affect the gross margin thereby affecting the target price, segment and product positioning.

[JayPrashanth]

Originally Posted by DRPSREDDY

I am sure it is a typographical error. It should be 900 thousand Euros or 9 million Euros. 900 Euros is nothing to ponder about.

It's per car. Did you know that VW used to lose about 1,000 Euros on every Polo sold in India except probably the GTs? Car making is not a high margin business. And this much money just can't be left on the table. This is also why the Polo isn't coming back to India. Cost structures just don't work and VW won't cheapen the car beyond a point as their brand ethos will be lost if they do. That's why they used to skimp on features rather than 'value engineering'. Now with M&M joining the party, VWs will be feature rich but through 'value engineering'. We'll have to see how future VWs age.

Biggest bummer in my book: The Virtus and Slavia are unlikely to be replaced if Mahindra comes on board as the NFA hasn't been engineered for sedans. So, only the Taigun and Kushaq will be retained, wearing VW and Skoda top hats and sitting on Mahindra's NFA platform. This means we have another 3-4 years of fun-to-drive sedans from VW and Skoda in the sub-15 lakh segments. Cherish it until it lasts.

Cheers,

Jay

[DRPSREDDY]

Originally Posted by JayPrashanth

It's per car. Did you know that VW used to lose about 1,000 Euros on every Polo sold in India except probably the GTs? Car making is not a high margin business. And this much money just can't be left on the table.

Maybe they would not have lost so much if they did use the TATA's AlfaArc platform which was initially on the table. Their VW engineers convinced them to modify their own MBQ platform to make the low cost MBQ A0 IN. But that didn't seem to work much to keet the platform costs under control.

Now with the new development, hope the Mahindra's new modular platform under development will form the base of new gen cars that can be exported to third world countries and also Europe.

[funnysaltbrick]

I don’t know. This feels like the VAG group driving their Indian operations into an all consuming star of hunger. Business wise, this might benefit them but on a perceived quality scale, this feels like a bad idea. Not brandishing Mahindra here, they have taken major steps in quality metrics but are they in the same league as Volkswagen or Skoda? Not in my books atleast.

As a left-field option, they should have considered a deal with Tata and their AlfaArc platform. Could have injected some German efficiency into the laggy Indian quality control and could have paved a potential powertrain solution that could have fast-tracked the Petrol motor for the Harrier/Safari.

I wish them the best but this just seems like another western giant throwing in the towel on India while the Koreans and the Chinese lap up the remains. Who’s next? Stellantis or Honda?

[Thad E Ginathom]

I read that VW is actually not doing well in Europe at the moment.

[volkman10]

More problems for Skoda Auto Volkswagen India as profit slips.

Skoda Auto Volkswagen India’s FY24 profit slips 69% to Rs 95.66 crore, revenues cross Rs 20,000 crore
A strong double-digit growth of its premium brands such as Audi, Porsche and Lamborghini and growing exports supported the revenue growth.

the manufacturer of the Slavia and Taigun — Skoda Auto Volkswagen India — posted a total revenue growth of 8%, crossing the Rs 20,000 crore annual turnover mark for the first time and ending the year with Rs 20,075 crore. This was driven by higher exports and strong double-digit growth in its premium brands —Audi, Porsche, and Lamborghini.

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[vinit.merchant]

Originally Posted by volkman10

More problems for Skoda Auto Volkswagen India as profit slips.
Skoda Auto Volkswagen India’s FY24 profit slips 69% to Rs 95.66 crore, revenues cross Rs 20,000 crore
A strong double-digit growth of its premium brands such as Audi, Porsche and Lamborghini and growing exports supported the revenue growth.

This is a paltry 0.5% net profit margin. This most probably is thanks to the premium & luxury brand sales + their exports. Don't think their domestic sales is generating any profits for them.

[sapien]

I see that there’re lot of negative emotions on this thread, but:

• Hasn’t the collaboration with Chinese local entities given great market share in China for this group? If someone like Toyota is doing badge engineering, whats wrong with VW collaborating with a local player?
• This could actually be next wave of growth for Skoda VW if executed well. Regarding Mahindra, irrespective of Ford, Skoda or anyone they’re doing pretty well, all recent launches are a proof of that. So this collaboration could only help them further their strengths. Also VW Mahindra will have better synergies due to the existing battery tech tie-up.
• Since it’s mentioned that VW will continue using their engines, why not choose Tata, they are anyway in dire need of powerful petrol engines. It’ll be a win-win for both the parties. Also, Tata’s bigger platforms derived from Land Rover’s Europe origins are very stable and have that VW like solidity.

Hopefully Skoda VW DNA stays in Indian cars.