Skoda to launch a new hatchback to take on Tata Tiago, Renault Kwid by 2021

Skoda and Tata Motors were in serious talks to share Tata’s Advanced Modular Platform (AMP) in the Indian market but the talks failed. Skoda, which is under the Volkswagen Group has decided to take a step forward in the Indian market. Skoda is currently working to assess if a new car can be built on Volkswagen’s MQB A0 platform.

Skoda to launch a new hatchback to take on Tata Tiago, Renault Kwid by 2021

Volkswagen Group has shifted to the advanced MQB platform in the international markets. Cars like Polo and Polo-based sedan, Virtus are based on all-new platforms while the Indian market still gets the PQ25 platform. The MQB platform will increase the price of the vehicles, which is why its introduction to the market is being delayed. Skoda was in talks with Tata Motors to share the Indian manufacturer’s all-new AMP platform but the cost of AMP turned out to be higher than Skoda’s expectations.

Skoda is now assessing the feasibility of introducing a new car in the Indian market that will be based on the basic version of the MQB platform. The platform is known as MQB A0 and it may form the base of an all-new car in India. Skoda has said that the brand is looking to develop a new, low-cost hatchback for the Indian market and it will arrive in 2021. No information about the segment of the new car has been given out yet. Skoda used to offer the Fabia hatchback in India sometime back but then discontinued it. Currently, the brand does not offer any hatchbacks in India.

The new car can be an entry-level car to take on the likes of Renault Kwid and Tata Tiago in the market. Skoda may also bring back the Fabia in India after customising it for the Indian market. The new car will arrive in 2021.

Skoda CEO Bernhard Maier said that Skoda “could start selling cars in India in early 2021.” In the initial phase, the company plans to produce more than 3,00,000 cars annually. The Volkswagen Group wants to increase its market share in India to 5% in the long term.

The Volkswagen Group will continue to update the current product line-up in India instead of bringing in the all-new MQB platform based cars like Polo and Virtus.