Skoda Auto, along with its parent Volkswagen Group, will invest 200 million Euros (approximately Rs 2,000 crore) in research and development (R&D) projects in India, reports Financial Express (FE).
As part of its efforts to localise its product lineup to suit Indian consumer needs, the company has opened a new technology centre at its Chakan manufacturing plant in Pune. The centre, which was inaugurated by Czech Prime Minister Andrej Babis on Saturday (19 January), will employ 250 Indian engineers.
“The technology centre will drive the localisation of 95 per cent cars developed for the Indian region. The first model will be a mid-size SUV,” said Skoda Auto board member Christian Strube.
"By opening the technology centre, we underline our determination to make the India 2.0 project a success. India has excellent universities and highly qualified staff; this state-of-the-art facility will help us unlock that huge potential, especially with regard to design and development. Local development is the key to success,” Strube added.
Tough Times Ahead
However, Skoda Auto has expressed a note of caution and stated that its balance sheets would come under strain in the near-future.
“We have a tough couple of years ahead of us...the profit situation is not particularly good. We are doing our best to run the current business far more efficiently," said Volkswagen group India head Gurpratap Boparai.
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