Skoda developing budget car for India and other emerging markets - Report

Despite the failed talks between Skoda, on behalf of Volkswagen, and Tata Motors, and the subsequent termination of the MoU signed in March, the Czech car maker has not given up plans to develop a budget car for emerging markets. Automotive News Europe reports Skoda is aiming to roll out a low-cost product by 2020.

According to the report, VW Group's Head of Strategy, Thoman Sedran, said Skoda has developed a series of ideas for a cheap car for the Indian market. The upcoming Skoda budget car could subsequently find its way into Brazil and Iran.

In March, the VW Group and Tata Motors signed an MoU for the exploration of joint development of products. As VW's MQB was deemed too expensive for the Indian market, VW tasked Skoda with exploring the possibility of using Tata's AMP (Advanced Modular Platform) for their next-gen car range. The platform was to underpin products for cost sensitive and emerging markets. However, concluding that substantial investments on the AMP was required to optimize it to meet future crash test and emission requirements, VW took the decision to call off the partnership.

If recent media reports are to be believed, Volkswagen is back evaluating MQB for India as the alternative path, and the board will make a decision next month. If VW does go through with the rationalization of the modular platform for India, it will open the door for the arrival of the new generation Polo. Other products underpinned by this platform, like the VW Virtus and the VW T-Cross, could also make it to India.

[source - Automotive News Europe]