Rumour: Skoda to invest Rs. 8,014 crore for 6 new models

According to a recent media report, the Volkswagen Group will hand over the lead of its India operations to its subsidiary, Skoda Auto. The Czech carmaker will take charge of product development for India and other emerging markets with plans to invest 1 billion Euros (Rs. 8,014.20 crore approx.) in the country.

At present, Skoda operates from Aurangabad, while VW's plant is situated in Chakan near Pune. Skoda is rumoured to take over the VW facility to build its high-volume models. However, there are certain legal hurdles to be negotiated before Skoda begins its operations at Chakan.

Skoda plans to develop 6 new models including 3 for Volkswagen. These cars will be based on the MQB platform and will be built on a new production line at the Chakan plant. The first new models for Skoda and VW are likely to be mid-size SUVs with their distinct brand identity, which will take on the Hyundai Creta in the Indian market. VW will get the T-Cross, while Skoda's product will be based on the Vision X concept which was recently showcased at the 2018 Geneva Motor Show.

Meanwhile, production of the PQ25-based Skoda Rapid, VW Vento, Ameo and Polo will continue till 2020. The replacement for the Rapid / Vento is expected to arrive after the planned mid-size SUVs. MQB-based hatchbacks will come last with a high level of localization. These will probably include a 4-meter version of the EU-spec Polo and a Skoda derivative in the form of the Fabia.

The company also has plans to set up a new engine plant that will churn out MPI and TSI petrol engines for its hatchbacks and mid-size sedans. The next-gen Polo and Fabia are expected to get new 1.0-litre, 3-cylinder MPI petrol engine with around 65 BHP. The current 1.2-litre, 4-cylinder TSI petrol unit that powers the Vento is likely to be replaced by a 1.0-litre, 3-cylinder turbocharged petrol engine producing around 115 BHP. The same engine will be offered on the Skoda Rapid that currently uses a 1.6-litre, 4-cylinder MPI petrol engine.

Moreover, the 1.5-litre, 4-cylinder TDI engine will be discontinued in 2020. This means, small cars and mid-size sedans will only be offered with petrol engines. The 2.0-litre, 4-cylinder TDI will be the only diesel option offered on the future VW Group products like the new mid-size SUV.

Finally, it has also been reported that exports from India will continue even in the future as it helps the VW Group with capacity utilization at its manufacturing plants and profitability. 

Source: Autocar India