Skoda’s India-specific sub-4 m SUV could arrive by 2023

The vehicle is being referred to as project 2.5. Skoda plans to keep its price competitive by localising over 95% of its parts.

Skoda Auto Volkswagen is planning to introduce a new sub-4-metre SUV in India. This segment contains some of the highest-selling cars in the country such as the Maruti Vitara Brezza, Hyundai Venue, Kia Sonet and Tata Nexon. The segment accounts for 15% of the overall passenger vehicle market. With 50,000 units sold a month, more than half of the utility vehicles sold in India are from this segment.

The new SUV is expected to be designed in Europe. But, Skoda plans to keep its price competitive by localising over 95% of its parts.

According to a media report, the Skoda-badged model will be India-specific and will go on sale in the second half of 2023. The vehicle is being referred to as project 2.5. At present, the company has a market share of less than 1.5%. With the new model, by 2025, Skoda is looking to increase this share to 5%. It plans to sell 50,000 units of the SUV per year.

Under its 2.0 strategy, the Volkswagen Group plans to invest more than 1 billion euros in India. The group plans to introduce a sub-compact SUV since sub-4 metre vehicles benefit from a significantly lower tax rate, compared to those greater than 4-metres in length.

Source: ET Auto