New Skoda compact-SUV will have over 75% localisation

Skoda Auto India is gearing up to launch its latest offering in the compact SUV segment. The upcoming sub-four-metre SUV promises to be a game-changer, thanks to its impressive localisation strategy. Let’s delve into the details.

Localisation Strategy

Skoda Auto CEO Klaus Zellmer recently revealed that the new compact SUV will boast an impressive 75-76% localisation. This means that a significant portion of the vehicle’s components and manufacturing processes will be sourced locally. But why is localisation so crucial?

• Price Competitiveness: By relying on local suppliers and production facilities, Skoda aims to keep costs in check. The benefits of localisation, including excise benefits, will be passed on to customers, ensuring a competitive price position.
• Learning from Past Mistakes: Skoda acknowledges that “over-engineering” was a misstep in the Indian car market. The company has learned valuable lessons and is now focused on striking the right balance. The compact SUV aims to provide superior quality without unnecessary complexities.
• Sweet Spot for Indian Customers: Skoda’s goal is to build cars that resonate with Indian buyers. The sweet spot lies in offering exceptional driving dynamics, fit and finish, sustainability, and safety—all while maintaining an ambitious price position.

The Road Ahead

Skoda’s compact SUV, set to launch by March 2025, will be the third product based on the MQB-A0-IN platform. It follows the footsteps of the successful Kushaq and Slavia models, emphasizing driving dynamics and safety.

Powering the new Skoda compact SUV will be a 1.0-litre, three-cylinder turbo-petrol engine. This engine is likely to produce around 115 Hp of power and will be paired to either a 6-speed manual or a 6-speed torque converter automatic. The car is also likely to come with features such as a 360-degree camera and an Advanced Driver-Assistance Systems (ADAS) for safety. However, the compact SUV may not have features such as a panoramic sunroof to reduce costs.

This upcoming SUV will take the competition to the Tata Nexon, Hyundai Venue, Kia Sonet and others in the segment.

Also Read: Skoda’s new compact-SUV spotted testing under camouflage again