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Upcoming Skoda Compact SUV Name To Be Revealed On August 21: Nexon, Sonet Rival Launching Soon
Earlier this year, Skoda announced plans to introduce its third model under the India 2.0 programme by early 2025. This new vehicle will be a sub-four-metre compact SUV, with the official name set to be revealed on 21 August 2024. The company is considering a name starting with 'K', aligning with its other SUVs like the Kushaq and Kodiaq.
Furthermore, Skoda Auto India is focusing on localisation to keep prices competitive for its upcoming compact SUV. Klaus Zellmer, Skoda Auto CEO, revealed that the sub-four-metre SUV will have 75-76% local content, allowing the company to pass excise benefits onto customers. Previously, Skoda aimed for 95% localisation in its India 2.0 products like the Slavia midsize sedan and Kushaq midsize SUV.
Cost Reduction Through Localisation
To reduce costs, Skoda intends to scale up sourcing from local suppliers and increase localisation further. Zellmer noted that one of the engine derivatives (the 1.0 TSI) is now fully built in India, highlighting procurement and localisation as key strategies moving forward.
The new compact SUV will be based on the MQB A0 IN platform, which has been specifically developed for the Indian market outside Europe. The design language of this new model points to a smaller version of the Skoda Kushaq, featuring a similar front end, wheel design, and taillamps.
Expected features include dual digital screens, climate control, connected car technology, and a 360-degree camera. This vehicle will compete against models like the Maruti Brezza, Kia Sonet, Hyundai Venue, Mahindra XUV300, Maruti Fronx, and Toyota Taisor.
Production and Export Plans
The upcoming compact SUV will be manufactured at Skoda's Pune plant alongside the Kushaq and Slavia models. With an annual production capacity of 270,000 cars for both Skoda and Volkswagen combined, Skoda Auto anticipates potential annual volumes of over 90,000 units for domestic and export markets. The brand aims to expand its presence in Southeast Asia, the Middle East, North Africa, and the Commonwealth of Independent States.
Zellmer acknowledged that over-engineering was a misstep in the Indian car market and that Skoda's new lineup would address this issue. He emphasised finding a balance between quality and price to cater to Indian customers' preferences. The company plans to capitalise on aspects like driving experience, fit and finish, sustainability, and safety to increase sales volumes.
The new compact SUV will utilise Skoda's 1.0-litre TSI petrol engine producing 114bhp and 175Nm of torque. It will come with either a six-speed manual or a six-speed automatic transmission.
Skoda Auto India is focusing on increasing localisation levels to maintain competitive pricing for its upcoming compact SUV while learning from past mistakes in over-engineering vehicles for the Indian market. The company's cost reduction strategy involves scaling up sourcing from local suppliers and increasing localisation efforts across its product range.
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