Skoda Auto India is focusing on localisation to keep prices competitive for its upcoming compact SUV. Skoda Auto CEO Klaus Zellmer revealed that the sub-four-metre SUV will feature 75-76% local content, allowing the company to pass excise benefits onto customers.
Previously, Skoda aimed for 95% localisation in its India 2.0 products, such as the Slavia midsize sedan and Kushaq midsize SUV. However, the 1.5 TSI engine and 7-speed dual-clutch automatic transmission are not yet fully locally made.
To maintain competitive pricing for its upcoming compact SUV, Skoda Auto India is increasing localisation levels while learning from past mistakes in over-engineering vehicles for the Indian market. The company’s cost reduction strategy involves scaling up sourcing from local suppliers and enhancing localisation efforts across its product range.
