Introduction:

Skoda and Volkswagen, under their India 2.0 initiative, are set to make a splash in 2024 with the launch of four new models. These additions to their portfolios include niche imports and updates to existing popular models. Let’s delve into the details of what enthusiasts can expect from these upcoming launches.

Skoda Superb (Expected Launch: Early 2024):

• Expected Price: Rs 50 lakh
• Key Features: Skoda plans to reintroduce the previous-gen Superb sedan in limited numbers. Equipped with an updated 190hp, 2.0-litre TSI turbo-petrol engine, the Superb will feature top-notch technology, including ADAS with lane-keeping assist, adaptive cruise control, a 360-degree camera, and more.
• Design and Performance: The Superb’s design is expected to showcase evolutionary styling, complemented by an all-new interior. The active tyre pressure monitoring system and nine airbags add to the safety features. While it won’t be locally assembled in India, it’s a stop-gap measure until the anticipated fourth-gen Superb with plug-in hybrid technology arrives.

Skoda Enyaq iV (Expected Launch: Mid-2024):

• Expected Price: Rs 55 lakh
• First All-Electric Offering: The Enyaq iV marks Skoda’s entry into the electric vehicle segment in India. Boasting a 77kWh battery, two electric motors, and all-wheel-drive capability, this five-seater crossover promises a range of over 500km and a swift 0-100kph acceleration in 6.9 seconds.
• Technological Advancements: Skoda has been testing the top-spec ’80x’ version, indicating a strong focus on advanced features and performance. It remains to be seen whether Skoda will offer lower-spec, two-wheel-drive variants to cater to different consumer preferences.

New Skoda Kodiaq (Expected Launch: Late 2024):

• Expected Price: Rs 50 lakh
• Modern Solid Design: The second-gen Kodiaq showcases a rugged and utilitarian look, inspired by Skoda’s ‘Modern Solid’ philosophy. With an extended length providing more space in the third row and boot, the new Kodiaq features a premium interior shared with the latest-gen Superb.
• Powertrain Configurations: While details on powertrain configurations are yet to be confirmed, the Kodiaq is expected to feature a mix of 2.0-litre petrol and diesel engines, along with plug-in hybrid and mild-hybrid options. Skoda’s decision on whether it will be a CKD (completely knocked-down) unit or an import remains pending.

Volkswagen ID.4 (Expected Launch: Mid-2024):

• Expected Price: Rs 55 lakh
• First All-Electric Model from Volkswagen: As Volkswagen’s maiden all-electric offering for India, the ID.4 shares similarities with the Skoda Enyaq iV. Powered by a 77kWh battery and boasting a performance-oriented GTX model, the ID.4 promises a range of up to 480km on a single charge.
• India 3.0 Plan: Volkswagen’s ID.4 launch is part of the broader India 3.0 plan, focusing on electric mobility. The plan covers both completely built units (CBUs) and locally built EVs, aligning with global trends towards sustainable and eco-friendly transportation.

Opinion

Skoda and Volkswagen are making significant strides in the Indian market with recent launches on their all-new platforms. However, the strategic choice between CKD (Completely Knocked Down) and CBU (Completely Built-Up) routes for mass-market brands can be a decisive factor, with potential hits or misses. Notably, the decision to reintroduce the Skoda Superb and Kodiaq as CBUs, considering they were once locally manufactured in India, raises questions about their market reception. Both brands should carefully weigh the advantages and disadvantages of this approach, keeping in mind the potential impact on pricing and competitiveness.

Furthermore, to enhance their market presence and future prospects, Skoda and Volkswagen could consider aligning more with the “Make in India” initiative. Shifting towards locally manufactured models could contribute to more competitive pricing and increased sales effectiveness. This move would resonate well with the Indian consumer sentiment and align with the government’s emphasis on promoting domestic manufacturing.

Additionally, exploring new market segments could be a strategic move for Skoda and Volkswagen to expand their footprint. The following are potential market segments that the brands could explore:

1. Toyota Innova Hycross Segment:

• Introducing a versatile and eco-friendly model in the MPV (Multi-Purpose Vehicle) segment could cater to the growing demand for environmentally conscious vehicles.

1. Mahindra Thar Segment:

• Venturing into the rugged and off-road SUV segment, akin to the Mahindra Thar, could tap into the adventure-seeking consumer base.

1. Tata Nexon Segment:

• The compact SUV segment, represented by models like the Tata Nexon, presents an opportunity for Skoda and Volkswagen to offer stylish and compact SUV options.

1. Maruti Swift Segment (similar to the previous Volkswagen Polo):

• Revisiting the hatchback segment with a model comparable to the Maruti Swift or the previous Volkswagen Polo could target the vast market of budget-conscious consumers.

1. 7-Seater Variant of Existing Kushaq and Taigun:

• Expanding the existing Kushaq and Taigun models to include a 7-seater variant could cater to the growing demand for spacious family SUVs.

Incorporating these strategic moves would not only diversify Skoda and Volkswagen’s product portfolio but also enable them to tap into emerging trends and consumer preferences in the Indian automotive market.

Conclusion:

Skoda and Volkswagen’s recent launches demonstrate their commitment to innovation and adapting to evolving market dynamics. While the decision to reintroduce certain models as CBUs raises considerations about pricing and competitiveness, a shift towards localized manufacturing aligns with the broader “Make in India” vision. Exploring new market segments, as suggested, presents opportunities for the brands to capture a broader audience. As Skoda and Volkswagen navigate the complexities of the Indian automotive landscape, a well-balanced approach that considers both international offerings and local preferences will be key to sustaining and expanding their success in the market.

Skoda and Volkswagen: Frequently Asked Questions

Q1: What is the India 2.0 initiative by Skoda and Volkswagen?

A1: The India 2.0 initiative is a strategic plan by Skoda and Volkswagen to make significant strides in the Indian automotive market. It involves the launch of four new models, including niche imports and updates to existing favorites.

Q2: Why is the Skoda Superb being reintroduced as a CBU?

A2: The Skoda Superb is being reintroduced as a Completely Built-Up (CBU) unit due to its discontinuation after the BS6.2 implementation. This decision is a temporary measure until the anticipated fourth-gen Superb with plug-in hybrid technology arrives.

Q3: What makes the Skoda Enyaq iV a significant launch?

A3: The Skoda Enyaq iV is Skoda’s first all-electric offering in India. It features a 77kWh battery, two electric motors for all-wheel-drive capability, a range of over 500km, and a swift 0-100kph acceleration time of 6.9 seconds.

Q4: What is the ‘Modern Solid’ design philosophy in the new Skoda Kodiaq?

A4: The second-gen Skoda Kodiaq incorporates elements from the ‘Modern Solid’ design philosophy, giving it a more rugged and utilitarian look than its predecessor. The design philosophy focuses on a premium and spacious interior.

Q5: Will the Volkswagen ID.4 be part of the India 3.0 plan?

A5: Yes, the Volkswagen ID.4 launch is part of the broader India 3.0 plan, which emphasizes electric mobility. The plan covers both Completely Built Units (CBUs) and locally built Electric Vehicles (EVs).

Q6: How can Skoda and Volkswagen balance CKD and CBU strategies?

A6: Striking a balance between Completely Knocked Down (CKD) and Completely Built-Up (CBU) strategies is crucial. While CBUs might impact pricing, embracing more localized manufacturing aligns with the ‘Make in India’ vision, contributing to competitive pricing.

Q7: Why is the shift towards electric mobility significant for both brands?

A7: The shift towards electric mobility aligns with global trends and reflects Skoda and Volkswagen’s commitment to sustainable transportation. It allows them to cater to the evolving preferences of Indian consumers and contribute to environmental conservation.

Q8: What challenges may arise with the reintroduction of Superb and Kodiaq as CBUs?

A8: Reintroducing Superb and Kodiaq as CBUs, after being locally manufactured, may pose challenges in terms of pricing and market acceptance. It requires careful consideration of how these models will be positioned in the Indian market.

Q9: Can the expansion into new market segments enhance Skoda and Volkswagen’s market presence?

A9: Yes, exploring new market segments offers opportunities for diversification and wider consumer reach. This strategic move allows Skoda and Volkswagen to cater to a diverse audience and align with emerging trends in the Indian automotive market.

Q10: How crucial is the balance between global strategies and local preferences for sustained success?

A10: Maintaining a balance between global strategies and local preferences is crucial for sustained success. Skoda and Volkswagen must adapt to the unique nuances of the Indian market while leveraging their global expertise to stay innovative and competitive.