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Skoda Auto Volkswagen India Private Limited (SAVIPL), the wholly owned Indian subsidiary of the Volkswagen Group, is close to finalising its next phase of investment and expansion in the country. The German auto major has been discussing new vehicle architectures with multiple potential partners and is considering all-new models, including electric vehicles, for the Indian market.
- Sources say Skoda-Volkswagen to localise MQB A0 37 platform
- Kushaq, Taigun underpinned by smaller MQB A0 27 platform
- 7-seater SUV underpinned by MQB A0 37 platform also likely
Industry sources say Skoda-Volkswagen has already kicked off conversations with Indian suppliers for localising the MQB A0 37 platform. This bigger and wider first-generation MQB platform, which has spawned cars like the third-gen Octavia and Mk 7 VW Golf, will enable Skoda Auto Volkswagen to produce C-segment models.
The current portfolio of VW and Skoda’s ‘India 2.0’ cars and upcoming ‘India 2.5’ SUV from Skoda are built on the smaller, second generation MQB A0 27 platform, which was introduced globally in 2016. VW India opted for the MQB A0 27 platform for its India 2.0 products as it was the latest evolution of the MQB architecture at the time. However, the platform is limited in length and width as it was designed for the Group’s smaller range of global products – the current VW Polo, T-Roc and Skoda Kamiq.
In fact, one of the weaknesses of both the Skoda Kushaq and VW Taigun is that they look half a segment smaller and have a narrow back seat. The limited width of the rear seat base is because VW engineers deliberately kept a wide gap between the seat base and the door as a safety margin in side-impact crash tests, which the midsize SUV passed with flying colours.
MQB A0 37 platform could underpin a 7-seater SUV
For its next-generation cars, which could include replacements of the Taigun and Kushaq, the MQB A0 37 is being considered. This larger platform will give Skoda and VW more flexibility with design, and it could even support a 7-seater SUV, which is a growing segment. However, the MQB A0 37 has an old or first-gen electrical and electronic (E/E) architecture, and heavy investment would be needed to update it. The E/E architecture is the backbone of any modern car today as it helps with future connectivity, software and ADAS requirements.
The MQB A0 37 is also compatible with hybrid powertrains, which can give the Group the flexibility to opt for a cleaner alternative, especially with governments, at the state level, inclined to give incentives to hybrids.
Four new vehicles are being explored on this architecture – the next-gen Slavia, Virtus, Kushaq and Taigun. We had exclusively reported earlier this year that the next phase of investment for India has been approved and the company is studying the MQB A0 37 platform to expand the addressable market. The discussions are in the final stages, and the company is likely to launch these new vehicles between 2027 and 2030.
Sources say the VW Group should invest at least a billion Euros (over Rs 9,000 crore) alone or with potential partners. The company is keen on participating in the government of India’s new EV policy, which will call for a minimum investment of Euro 400 million (about Rs 3,650 crore), and it's seeking clarity on the same before investing.
With inputs by Ketan Thakkar
Also see:
Deep Drive Podcast: Volkswagen, Skoda's future plans and past deeds in India
New Skoda Superb to be an import only as local assembly unviable
Skoda Kushaq facelift to launch in 2025
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