The entity, which will be headquartered in Pune, was formed after the merger of Volkswagen's three entities in India -- Volkswagen India Pvt, Volkswagen Group Sales India Pvt, and ŠKODA AUTO India Pvt.
The merger will help in efficient use of the existing synergies in this important growth market.
The companies are tapping into a common platform called MQBAO IN for churning out these initial bunch of models. Depending on the success of the new platform and consumer acceptability of these new models, both companies will take a call if the same platform should be used for developing a hatchback (compact car).
Speaking to Moneycontrol, Zac Hollis, Director – Sales, Marketing and Service, Skoda Auto India, said, “We can launch the car at the right price if there is a business case for us. The first two cars will be mid-size SUVs and there will be a mid-size notchback. We will see what other body style can be made out of the MQBAO IN platform. It could be a hatchback but that business case still needs to be worked out.”
Skoda exited the hatchback segment in 2012-13 with the phase out of Fabia. The model served as Skoda’s response to Maruti Suzuki’s runaway hit Swift. As most of Fabia’s parts were imported, it exposed itself to forex fluctuations. Mounting competition too forced Skoda to withdraw the Fabia from the market.
At present, the two companies have only the Volkswagen Polo on sale in India, which qualifies as a hatchback. The Polo has been on sale since 2009.
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