Skoda will introduce a new budget model

Skoda will introduce a new budget model

November 18, 2019 0 By autotimesnews

In February, Skoda will unveil the SUV concept, which will be the first model based on a new low-cost platform developed by the automaker in India.

The concept will be shown at the Delhi Motor Show from February 7-12. According to Skoda CEO Bernhard Meyer, the production version will go on sale by the end of next year and by the beginning of 2021 a hatchback will join it on the same platform.

Skoda is developing a low-cost platform called the MQB A0 for its parent company Volkswagen Group. The program includes two cars for the VW brand, including a small SUV. The platform is part of the VW Group’s offer to accelerate sales in the market. It is expected that vehicles using the platform will not be adapted for sale in Europe.

“We said that if we want to be competitive, we must exactly meet the requirements of our customers in India. They are different from what we see in the rest of the world, ”Mayer told Automotive News Europe at a press conference in Prague.

Car sales in India are dominated by Maruti Suzuki and Hyundai, who took advantage of local economies of scale to deliver vehicles at an attractive price to local buyers. Renault was the most successful European brand in India in recent years after developing a small Kwid SUV locally.

However, according to forecasters at LMC Automotive, Renault was only India’s ninth best-seller in September. Skoda was the 13th bestseller, and VW at number 10.

The passenger car market in India is currently experiencing a “serious and long-lasting” recession, whose sales fell 16% in the first nine months to just over 2 million, according to a recent LMC report.

This is due to the lack of access to credit, higher prices for vehicles, weak consumer sentiment and a slowdown in the economy.

Skoda will only launch its new cars for India after the country switches to a stricter Bharat Stage 6 emission standard in April. It is projected that this change will lead to a further lull in sales after the anticipation at the beginning of the year of the rush to buy cheaper cars designed for compliance current BS-4 standards.

LMC expects India’s car market to stabilize at 3.4 million units by 2021.