SEAT, Skoda Tasked With Growing Emerging Markets

Volkswagen assigns Spanish automaker SEAT to lead the group’s growth in North Africa, with Czech manufacturer Škoda to have the same role in India as the German company advances its strategy to gain speed and efficiency by decentralizing operations.

VW says SEAT will coordinate brand strategy and foster partnerships with other companies in North Africa.

SEAT President Luca de Meo says VW chose to use SEAT because of its role in last year’s rollout of a multi-brand assembly plant in Relizane, Algeria. The factory 175 miles (280 km) southwest of Algiers is operating at full capacity.

Along with SEAT models, Relizane assembles several VW, Škoda and VW Commercial Vehicle models, all geared toward the Algerian market.

One of SEAT’s missions is to contribute to the creation of a supplier network to the automotive industry in Algeria, with the aim of developing and assembling new models in the country.

North Africa is one of the key regions in SEAT’s globalization strategy. The automaker aims to raise its international profile outside Europe and strengthen its presence on all five continents.

Meantime, Skoda has been assigned to develop the Indian car market.

Škoda CEO Bernhard Maier says all future models designed and produced locally in India will be based on VW’s MQB platform, which already meets stricter Indian legal requirements taking effect in 2020.

Skoda also is assuming responsibility for the subcompact MQB A0 platform, initially with a focus on India.

Preparations for the India-based development and production of the new, technologically pioneering volume models for Škoda and VW are under way, and the release of the first Škoda model based on the A0-IN platform is scheduled for 2020.

“We are firmly convinced that, after one and a half years of intensive work, together with VW we now have a suitable approach to bring the right vehicles into the Indian market at the right time,” Maier says in a statement.

By standardizing components, dimensions and production processes with the MQB platform, costs are lowered and production times are reduced, he says.

“The MQB increases flexibility when developing new vehicles,” Maier says. “Most of the technical development will take place in India.”

Skoda sells four models in India. The Rapid is produced at the Pune plant, while the Octavia, Superb and Kodiaq models are manufactured in Aurangabad, also the company’s India headquarters.