The brands also announced an official merger in the country under the India 2.0 project

Skoda and VW to forge a brand new identity where the former takes more importance.

The new entity will introduce two new compact SUVs at the 2020 Auto Expo.

We expect them to be the VW T-Cross and Skoda Kamiq-based SUV.

Nearly six months after first hinting about a possible merger, Skoda and Volkswagen India have joined hands along with Volkswagen Group Sales India Private Limited, which takes care of brands such as Audi, Porsche and Lamborghini in India, to form Skoda Auto Volkswagen India Pvt Ltd.

The new entity plans to showcase two new SUVs – the VW T-Cross and the Skoda Kamiq-based SUV – at the 2020 Auto Expo. Both SUVs are based on the MQB A0 platform that will be heavily localised (MQB-AO-IN) by the two companies for India. This announcement came last year when the group announced its ’India 2.0’ business plan

VW and Skoda’s MQB-AO-IN-based cars will be powered by a new 1.0-litre turbocharged petrol engine. These cars are likely to be offered with the option of a CNG powertrain as well. However, there’s no clarity on the availability of the 1.5-litre diesel engine in the BS6 era yet.

The two SUVs will be positioned in the highly contested compact SUV segment to compete against the likes of the Nissan Kicks, the Kia Seltos and the Hyundai Creta, which is set to receive a generation change soon. What’s more, these SUVs will also have to take on mid-size offerings such as the MG Hector and Tata Harrier.

Other brands such as Audi and Porsche under the VW Group umbrella in India will continue with their distinctive identities and consumer experiences just like VW and Skoda. Current sub-brands on offer include Audi, Lamborghini and Porsche.