Volkswagen looks to increase market share through Kushaq

Volkswagen-owned Skoda Auto has not been able to make a big impact in the Indian market since its inception. Hence it is planning to introduce a range of new vehicles and source more parts locally as part of a strategy to revive its fortunes in a market dominated by Maruti Suzuki and Hyundai.

Looking to leave the impact of the pandemic behind, the company is charting out plans for Kushaq, the mid-sized sport-utility vehicle slated for launch in July. The Kushaq is the first product of the India 2.0 project of the company announced in July 2018.

According to a media report, Skoda Auto and other foreign manufacturers in India have been facing issues on the total cost of ownership as many vehicle parts were not localised, which ultimately raised the final cost of services.

Volkswagen has brought down the prices of their existing parts, and the products under the India 2.0 programme will have very high local components, effects of which would be transferred to the consumers in the form of cost reduction. They are also planning to have a constant product pipeline and product upgrades.

The India 2.0 project entailed an investment of €1 billion with the model offensive spearheaded by Skoda and a target of 5% market share by 2025.

The Kushaq will compete with Hyundai Motor India and Kia Motors, who dominate the domestic SUV market. Competition in the segment is set to intensify with the launch next year of a new mid-sized SUV model by market leader Maruti Suzuki.