The Skoda compact SUV has more than 75% local content

“We are off to a very good start with the 2.0 product,” he added. For reference, Skoda has 95% availability for its Indian 2.0 products, including the Slavia mid-size sedan and the Kushaq mid-size SUV. Considering that the 1.5 TSI engine and 7-speed dual-clutch automatic transmission are not yet fully developed locally, it looks like Skoda is well on its way to achieving this goal.
The Skoda CEO also said that “over-engineering” has been a mistake for the Indian car market in the past and the new lineup, especially the compact SUVs to be launched in March 2025, will change that. “We have learned many lessons from the Indian market. We have often built cars that meet our expectations. They are doing too much. And according to the price. Of course, this weakens our competition,” he said. He also said that companies should learn and understand their sweet spots. “That’s what we aim for. We want to make a car that Indian consumers are willing to pay for. And this is a lesson we must continue to learn. Our competitive pricing position is very ambitious. The idea is to offer a better vehicle than what is offered in the sector”, he pointed out.

Zellmer also said that the company will strive to deliver its vehicles, quality and finish, durability and safety to increase sales. “Our competitors are outselling us,” he said. There is more room for improvement in the sweet spot. Some things are indisputable. People who buy European cars in India appreciate the quality. “Our cost savings is what we achieve with our sub-4 meter products.”

The company plans to expand its pool areas and expand further to reduce costs. He also said that one of the diesel engines (1.0 TSI) has been manufactured in India and enjoying the sales and location advantages is the way forward. The new compact SUV is the first platform produced by Skoda outside of Europe and the third on the MQB A0 IN platform that is adapted for the Indian market. The platform is said to be equipped with the best engines and advanced safety systems for the Indian market and meet the country’s latest safety and delivery requirements. About 50% of Skoda cars manufactured outside the Czech Republic are produced in India, and the company’s future export strategy will also focus on products developed in India. Skoda’s next compact SUV will be built on the same production line that produces the Kushaq and Slavia.

The Pune plant produces 2.7 million units a year for Skoda and Volkswagen. Skoda Auto expects annual sales of over 90,000 units to serve both the domestic and Skoda markets. The brand aims to establish a presence in South Asia, the Middle East, the Commonwealth of Independent States and North Africa..