Press release: Skoda Auto India to spearhead Volkswagen Group growth in India
In a press conference today, Skoda Auto India has revealed key specifics of what the company is calling a major strategic move to set the tone for the coming years of its operation. Skoda Auto India, under the Volkswagen Group, will take over the VW brand's mandate in India, in terms of product development and growing volumes. To this end, the VW Group has made a one billion euro investment in Skoda Auto India. This, largely, will go towards developing products on the localised MQB-A0 platform more suited towards the price-sensitive Indian market. As well as retooling VW's existing Chakan plant to produce Skoda vehicles, the company is looking to create 4,000-5,000 new jobs over time. The first product to be developed under the new plan is a mid-size SUV, which will take on the likes of the Hyundai Creta.
Read the full text of the Press release below:
'INDIA 2.0': Volkswagen Group invests one billion euros in
project led by KODA AUTO
Volkswagen Group is investing one billion euros in the implementation of the project
One of the largest investments in the Indian Automotive sector
Together, KODA AUTO and Volkswagen will develop new models for the Indian market
The first model to appear as part of the project will be a mid-size SUV to be showcased in 2020
Technical development of new products will take place in India
Mladá Boleslav / New Delhi, 2 July 2018 KODA AUTO CEO Bernhard Maier and Gurpratap Boparai, Managing Director of KODA AUTO India Private Ltd, announced details of the 'INDIA 2.0' project at a press conference in New Delhi today.
Going forward KODA AUTO is responsible for leading Volkswagen Group's planned model campaign on theIndian market. Volkswagen Group is investing one billion euros towards the implementation of the project, primarily between 2019 and 2021. To ensure the products are perfectly suited to the Indian market, KODA AUTO will set up an engineering centre in the country. All models designed and produced locally in India in the future will be based on Volkswagen Group's MQB platform, which already fulfils the stricter legal requirements for India that
come into force in 2020.
KODA AUTO CEO Bernhard Maier said, "Experts predict that in the next few years India is going to become the third-largest automotive market worldwide. With our 'INDIA 2.0' project we are now creating the right conditions for sustainable growth there. Our objective is ambitious, but achievable: together with the Volkswagen brand, we are seeking a market share of up to five per cent in the long term, depending on market and segment development."
Gurpratap Boparai, Managing Director of KODA AUTO India Private Ltd, added, "With the 'INDIA 2.0' project, KODA AUTO India and Volkswagen Group India are in an excellent position to optimally confront the dynamics of the Indian car market. In India, we will offer world-class products at prices that amount to a paradigm shift in the automotive industry. We will manufacture the new products on the localised MQB A0 platform, which already fulfils the stricter emission and safety standards that are expected to come into force in India in 2020."
Initially, KODA AUTO will develop the MQB A0 platform with a focus on India (MQB-A0-IN). In the second phase, KODA will be assessing the possibility of exporting vehicles manufactured in India. KODA and Volkswagen will develop several products based on this platform. The model campaign will begin in 2020 with a mid-size SUV.
To ensure that the planned models will fulfil the requirements of Indian customers, KODA AUTO will develop these products at the world-class engineering centre which is part of the INDIA 2.0 project. Within the INDIA 2.0 Project, KODA AUTO India plans to gradually create 4000 5000 new jobs.
KODA AUTO India Private Ltd. currently offers four models on the Indian subcontinent: the OCTAVIA, SUPERB, RAPID and most recently the KODIAQ, which was launched in October 2017. The RAPID is manufactured at the Pune plant, while the OCTAVIA, SUPERB and KODIAQ models are produced in Aurangabad where the company
headquarters are located. KODA vehicles are sold in India through 70 dealerships and 70 service centres are available to customers.
Starts Rs 10 Lakhs