Instead, the company will concentrate on VAG’s India invasion.
Skoda decided after years of negotiations and investigations to postpone its U.S. launch. Skoda will delay its U.S. launch after years of discussions and investigations. Instead, it will concentrate its resources on Volkswagen Group’s low-cost project in India. After the failed cooperation between Volkswagen , local automaker Tata Motors, the Czech manufacturer will lead VAG’s Indian invasion.
According to Skoda CEO Bernhard Maier, Autocar, “We will need more space to work on US plans now.” “The Group asked us to lead the development of a platform that is primarily focused on India, and to look into building that business sustainably. This is a daunting task and we need to take each step in the right order. It is not a good idea to rush to the U.S. or to set a deadline for when we will be going. You don’t have to make a decision immediately.
Skoda is currently evaluating whether Volkswagen Group’s MQB A0 platform that underpins cars such as the new SEAT Polo and SEAT Ibiza, is suitable to a range budget cars for India. The company could also consider a completely new architecture. However, VAG would have to establish the manufacturing infrastructure in India.
Maier stated to the British publication that “it’s obvious that without radical localization, and the associated cost advantages,” we will not be able to make the MQB platform a competitive tool for India. Skoda will have to work harder by 2020 when India will be the third-largest auto market in the world.