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Volkswagen invests one billion euros in India for subsidiary Skoda

13. August 2019
VW Skoda India

At a press conference in New Delhi on July 2, 2018, Skoda CEO Bernhard Maier and Skoda Auto India Managing Director Gurpratap Boparai announced further details. The Volkswagen Group will invest one billion euros in the project between 2019 and 2021 through its subsidiary Skoda. This sum is one of the largest investments in the Indian automotive sector and at the same time the starting signal for a model offensive of the Skoda brand in India. To ensure that the new models meet the requirements of the Indian market, Skoda will set up a local development centre and design and produce the new vehicles in India. The existing Volkswagen Group platform MQB will be used for this purpose, which already complies with the stricter safety and emission guidelines that will come into force in India from 2020.

Skoda CEO Bernhard Maier justified the investment with the fact that India will be the world’s third-largest automobile market in the coming years and, together with the Volkswagen brand, he expects the Group to have a market share of around five percent. According to Boparai, Managing Director of Skoda Auto India, Skoda and Volkswagen are in a good position to penetrate the Indian automotive market. It is possible to sell first-class products at reasonable prices and also benefit from the awareness of the Volkswagen brand and the appreciation of German engineering. By adapting the MQB A0 platform to Indian conditions, a rapid development of new vehicle models is possible, which will later be exported to other countries. The first model to be sold on the Indian market from 2020 will be a mid-size SUV.
As part of the “India 2.0” project, up to 5,000 new jobs will gradually be created in the new development centre and production facilities. Skoda currently offers four vehicle models on the Indian market, including the KODIAQ, which was launched in October 2017. Skoda operates plants in Pune and Aurangabad, where it also has its headquarters. The vehicles are sold by 70 dealers and a further 70 service centers in the country. Skoda Auto has been present on the Indian market since 2001. The automotive sector in India can also be an opportunity for growth and globalisation for your company. The export of products to India often requires an obligatory India certification according to the Automotive Industry Standard (AIS). We would be pleased to advise you comprehensively on the AIS certification for India.

MPR Author

About the author: Julian Busch is founder and managing director of MPR China Certification GmbH
Publisher: MPR China Certification GmbH

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