Skoda is gearing up for the introduction of its all-new compact SUV, set to hit the market next year. This vehicle marks a significant move for Skoda, being an entirely new product manufactured in India for both domestic and international markets.

Highlights of Skoda’s Compact SUV Strategy:


  • High Degree of Localisation: Skoda aims for a 90% localisation level for its compact SUV to ensure competitive pricing. This strategy leverages tax benefits for sub-four-metre vehicles and aims to meet market expectations effectively.


  • Powertrain Options: The compact SUV will feature the 1.0 TSI engine, with the 1.5 TSI turbo-petrol unit still under consideration. The focus on heavily localised engines is part of Skoda’s India 2.5 plan, indicating a strong commitment to catering to the Indian market’s needs and preferences.


  • Export Plans: Skoda’s made-in-India compact SUV is not just for local consumers but is also planned for export to markets like Mexico, Africa, and potentially South-East Asia, including Vietnam. This global model will benefit from the economies of scale achieved through localisation and part sharing with other MQB A0 IN-based vehicles.


  • Price and Localisation Targets: With an eye on competing in a segment filled with established players like Maruti Brezza, Hyundai Venue, and Kia Sonet, Skoda is focused on achieving a competitive edge through localisation and pricing. Piyush Arora, MD and CEO of Skoda Auto Volkswagen India, emphasized the company’s commitment to meeting market price expectations.


  • Expected Production Start: Production of the new compact SUV is anticipated to begin by January 2025 in India, as part of Skoda’s new India 2.5 plan.


Conclusion in Short.

Skoda’s upcoming compact SUV represents a strategic move to strengthen its position in the competitive Indian automotive market and beyond. By prioritizing localisation, exploring efficient powertrain options, and planning for significant exports, Skoda is poised to make a substantial impact with its new offering.

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