Skoda-Maruti to Develop Small Car for Emerging Markets

Wednesday 17 November 2010, 00:00 AM by Payal Pathak

Volkswagen Group company Skoda Auto is planning to develop a new small car model for the emerging markets including India. The strategy comes as a part of Volkswagen-Suzuki’s global alliance to develop small car for future generations. The Skoda small car model, expected in 2012, will be smaller than Skoda Fabia and will compete in the compact A1 segment.

The new small car may leverage the new VW Group - Maruti Suzuki partnership. “We are bringing out a small car in 2012 where Maruti inputs could be possible,” said Thomas Kuehl, board member and director, sales & marketing, Skoda Auto India. "Maruti is the expert in low-cost manufacturing and it made sense for Skoda to seek inputs," he added further. He also stated that it was due to Maruti that Suzuki holds such a strong position in the small car market in the global scenario. Thus, a decision about Maruti-Suzuki’s input in Skoda Auto India was taken at both the firm’s headquarters.

MSIL is the strongest player in the Indian market with more than 50 percent share while Volkswagen has yet to gain a considerable market share to make its presence felt. Volkswagen group companies already have small cars like VW Polo and Skoda Fabia in the small car segment.