The low-cost SUV will be built to compete with cars like the Hyundai Creta.

Skoda Auto has confirmed that it will develop a low-cost ‘Eco’ platform for the VW Group to target markets like India. The first model to be produced on this new platform will hit markets in 2020. Skoda and VW will have individual five-seat offerings, but we expect the compact SUVs to share powertrains and other mechanicals.

VW plans to discontinue its 1.5 litre diesel before 2020. This means, the manufacturer will need a new diesel motor for this upcoming compact SUV. It is likely that the company will use a sized-down version of its 2.0 litre diesel or it’s also possible that the German manufacturer would use a small diesel engine from another manufacturer.

Soon after this compact SUV makes its debut, the Vento and Rapid will be due for a model change in 2021. Skoda is also expected to make a return to the hatchback segment in 2022, after leaving this space empty with the discontinuation of the Fabia in 2013. This is the first phase of the company’s product plan, both manufacturers are expected to get three new models each – a compact SUV, mid-size sedan and a premium hatchback.

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