Volkswagen is working on a localised version of the MQB A0 platform and will introduce a localized version of the new Polo based on this in 2020. This effort will be led by Skoda who in India is considered as a premium brand above VW but globally is the group’s budget offering. Earlier this year, Skoda had announced a JV with Tata to produce low priced cars using the AMP platform. However, that fell through and this will be the next course of action for the group.
Globally, the MQB A0 platform covers all the superminis produced under the VW umbrella and it is going to be a similar story here. Under this platform we can expect the next generation Polo, Vento, Rapid, Ameo and even a new Fabia to take on the likes of the Maruti Suzuki Baleno and Hyundai Elite i20. Additionally, this platform is also expected to underpin the production version of the Polo based T-Cross SUV that will be unveiled next year.
To most, using the term localized means cost-cutting through lower quality. However, we believe that here it will refer to the use of local vendors and suppliers for parts and development in a bid to keep costs low and ultimately pass on this benefit in the form of lower priced cars. With Skoda leading the charge, the company is expected to invest close to a billion dollars to ensure this development comes through.
