Under the India 2.0 initiative, Volkswagen group, led by Skoda, is aiming at five per cent market share in five years from the launch of their new series of products in 2020-21. And to make inroads into a price-sensitive market, Skoda aims to build cost-effective and competitive products while maintaining the global ethos and standards of the Volkswagen group intact.
Currently, the localisation of Volkswagen group’s India-built products averages just above 75 per cent. To attain the 95 per cent localisation target, Volkswagen group has confirmed that the engines will also be built here in India. As the existing set of engines might not continue into the BS-VI era, the new engines might be developed specifically for India or the emerging markets.
Volkswagen is also keen on developing CNG-friendly engines for the Indian market owing to their clean nature and lower costs. Volkswagen already has the gas-based 1.0-litre and 1.5-litre TGI engines globally and it is certainly possible for them to bring the technology to India. However, the gearboxes will still be imported to India as VW group has already setup enough capacity across the globe to cater to the future demand of gearboxes as well.
