Volkswagen Creta rival under the India 2.0 project is under consideration.

Volkswagen Tiguan Colours
Currently, the only SUV in Volkswagen’s India line-up is the Tiguan

Volkswagen is readying itself for a strong comeback in India courtesy the India 2.0 project. As part of the new project, the carmaker is planning for a fresh round of investments, a renewed product line and a high degree of local manufacturing. The first among the products from the new project will be a compact SUV rivaling the Hyundai Creta. The SUV will be based on an all-new platform called the MQB A0 IN and the company is planning to invest a minimum of Rs. 8000 crores over the next few years.

Due to its better experience in handling costs, Volkswagen has entrusted Skoda to develop products for the Indian market and simultaneously both the companies will also jointly develop products. While the Czech automaker will have its own products on the shared platform, it is also looking at re-entering the hatchback segment additionally.

Currently, only 80% of the content for three of Volkswagen cars is made in India, however, the company plans to increase this to 90% to lower costs. While engines and transmission are currently imported as CKD and assembled in the Chakan plant, the German auto giant subsequently plans to manufacture the powertrains (engines and transmission units) at its facility which will push the localisation levels to 90%.

Volkswagen’s officials haven’t mentioned an exact figure for the investment but say that it will be a substantial amount owing to the fact that the products need to be developed from scratch and the local manufacturing of powertrains has to be started. Having said that, the India 2.0 project does not allow the company to go below the Polo in India as it finds price parameters too tight and feels it is very difficult to make a possible business case.

Volkswagen Creta Rival

– Volkswagen planning a compact SUV to rival the Creta
– SUV to be based on the new MQB A0 IN architecture
– The automaker hasn’t mentioned a launch timeline for the compact SUV

Volkswagen T-Roc Front
The carmaker thinks a compact SUV on the lines of the Hyundai Creta has the highest potential for growth in India

Source –