Skoda Auto Volkswagen India (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.
Skoda Auto Volkswagen India (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.
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 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 are built on the second generation but smaller MQB A0 27 platform which was introduced globally in 2016. The MQB A0 27 was the latest evolution of the MQB platform at the time and the reason why VW India opted for this architecture for its India 2.0 products. However, there are limitations to the current MQB A0 27 vehicle architecture, which restricts the length and width of the vehicles as it was designed for the VW Group’s smaller range of global products, like 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 have deliberately kept a wide gap between the seat base and the door as a comfortable safety margin in side impact crash tests which the mid-size SUV passes with flying colours.
For its next-generation of cars which could include future replacements of the Taigun and Kushaq, the MQB A037 is being considered. This larger platform will give Skoda and VW more flexibility with design and could even support a seven-seat SUV which is a growing segment. However, the MQB A037 has and old or first-gen E/E or electrical and electronic architecture Heavy investment would be needed to update the MQB A037’s E/E architecture which is the backbone of any modern car today. to deliver future connectivity, software and ADAS requirements.
The MQB A037 is also compatible with hybrid powertrains which can give the Group the flexibility to opt for a cleaner alternative, especially with governments, especially at the state level, inclined to give fiscal incentives to hybrids.
Four new vehicles on this architecture are being explored—the next-gen Slavia, Virtus, Kushaq, and Taigun will transition to this platform. Additionally, a 7-seater SUV for VW and Skoda is being studied 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. Autocar Professional had exclusively reported in September of 2023, that the next phase of investment for India is approved and the company is studying the MQB A0 37 platform to expand the addressable market.
Sources say the VW Group should invest at least a billion Euros 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 of $500 million or Euro 400 million. The company is seeking clarity on the policy to define its final blueprint for the future investment.
Also see: Deep Drive Podcast: Volkswagen, Skoda’s future plans and past deeds in India