PUNE: Volkswagen
opened a new research and development facility in Pune as part of the
group’s ‘India 2.0’ plan that calls for a Rs 2,000-crore investment into
R&D, helping enhance the local content in the cars to be sold in the
world’s fastest-expanding major economy.
The Pune facility is the first step in the VW group’s €1
billion (Rs 7,900 crore) commitment to make cars for the Indian market and grab
a larger pie for its brands that have hitherto remained only on the fringes of
the local automobile market.
Inaugurated by the prime minister of Czech Republic, Andrej
Babiš, the new technology centre will employ 250 engineers who will work
towards achieving 95% localisation of components on vehicles developed
specially for India, up from 76% currently, the company said. The local
R&D base will ensure that the products are designed for the Indian market
as against customising global products for the Indian buyers, something
that did not motivate customers locally.
“We expect to roll out the first products, for both the Skoda
and the Volkswagen brands, by 2020-21, starting with a mid-sized SUV based
on the MQB A0 IN platform,” said Gurpratap Boparai, who took charge as the head
of the Volkswagen group in India. The MQB A0 IN is the Indian version of the
global MQB A0 vehicle architecture.
Until then, it is expected to be challenging for the VW Group
in India, said Boparai, as the company would continue to rely on upgrades of
the existing models to stay relevant in the highly competitive market. The
India 2.0 project will be led by Skoda India to revive the group’s footprint in
the country, which has remained sub-optimal so far with a share of less than 2%
in the growing market. While the brand Volkswagen hit its lowest-ever volume in
a decade in India in 2018, Skoda has become a niche player. Bringing the MQB A0
platform to India is aimed at changing the group’s fortunes with four
mainstream models that include one sedan and one SUV each from both the
brands.
The first model, which will be a Skoda SUV, will be exhibited at the Auto Expo
in Greater Noida in 2020 and is likely to hit the market in the last quarter of
FY20-21. The subsequent models will follow, with a new launch every 3-6
months. According to several people in the know, the Volkswagen Group is
planning for an annual volume of 1.8-1.9 lakh units on MQB A0 in 3-4 years of
the launch, with an eventual goal of capturing 5% of the growing Indian market
that is set to become the third largest in the world. The group is also
considering exporting vehicles from India to other markets with similar
needs.
Last week, VW India was pulled up by the NGT for not submitting an interim deposit of Rs 100 crore with the CPCB until clarity emerges on the allegations against the company for selling polluting diesel cars in India.
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