Skoda Expected to Unveil Compact SUV Plans on February 27

After establishing a substantial volume base in India with the Kushaq and Slavia, two mainstream models from Skoda Auto under the Volkswagen Group’s indigenous ‘India 2.0’ project, the Czech carmaker is poised to announce its foray into the compact SUV segment in the country. Skoda’s global management is slated to visit India later this month to unveil the company’s plans and market expansion strategy.

Internally dubbed as ‘India 2.5’, the compact SUV project marks Skoda’s return to the sub-4-meter segment since the discontinuation of the Fabia in 2013. Based on the MQB-A0 (IN) platform shared with the Slavia, as well as Volkswagen brand equivalents such as the Taigun and Virtus, this compact Skoda SUV will benefit from the lower 28 percent GST slab applicable to ‘small cars’. It’s expected to feature the 110hp, 1-liter TSI engine, omitting the 1.5 TSI option utilized in the ‘India 2.0’ cars from VW and Skoda.

Anticipated to hit showrooms around March 2025, the compact SUV launch faced delays due to commercial feasibility challenges with the ‘India 2.5’ project. Despite setbacks, Skoda revived the project after management changes, overcoming obstacles with approvals from the global HQ.

While Volkswagen focuses on EVs, Skoda will proceed with the compact SUV project independently. The commonality of parts with the India 2.0 cars and a strong export focus are expected to provide critical volumes and scale for ‘India 2.5’ viability.

Skoda Auto Volkswagen plans to inject fresh capital into its India operations for the ‘India 2.5’ project, leveraging leftover investments from ‘India 2.0’. With an eye on annual volumes surpassing 90,000 units for domestic and export markets, Skoda aims to bolster its presence in Southeast Asia, the Middle East, the Commonwealth of Independent States, and North Africa.