Skoda is planning to launch a new sub-4-meter compact SUV in the Indian market. The new sub-4-meter SUV will compete with the hotly contested compact SUV segment which includes Maruti Suzuki Vitara Brezza, Tata Nexon, Kia Sonet, and the Hyundai Venue. The segment competes with over 50,000 vehicle units sold every month. The segment also holds 15% of the market share in the overall passenger segment.
Under the Skoda Project 2.0, Skoda Auto Volkswagen India Pvt Ltd (SAVWIPL) has invested more than EUR 1 billion in the Indian market. According to reports, the group SAVWIPL is now working to bring the new compact SUV under a new Project 2.5. Under the plan, SAVWIPL will develop a new compact SUV to gain from the lower tax bracket on such vehicles.
Reports suggest that the project discussions are in the final stages and the car will make its debut under the Skoda badge. But no Volkswagen iteration is in talks yet. Also, the brand plans to target around 50,000 units of sales per annum. The new Project 2.5 will also come with funding of EUR 1 billion and the savings generated through “aggressive development and localisation”.
Furthermore, discussions are being deliberated on Projects 3.0 and 4.0 for sedans as they will be critical for the Volkswagen Group in India. SAVWIPL plans to set a target of 5% market share in the Indian market which is currently short of 1.5% market share.
The brand recently launched the Skoda Kushaq in the Indian market. The SUV competes with the Hyundai Creta and Kia Seltos has already received over 3,000 bookings and Skoda aims to double its sales to 30,000 units in 2021. The brand has also commenced deliveries of the Skoda Kushaq in Bengaluru. The compact SUV comes with a starting price tag of INR 10.49 lakh ex-showroom. In the coming three years the brand also plans to grow threefolds from its current sales.
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