Amid Europe's EV shift, VW counts on Skoda for low-cost combustion engine platform

Volkswagen Group is pivoting platform development for internal combustion engine cars to markets such as Russia, India and Brazil where EV growth is expected to be slower than in Europe.

The group’s new MQB-A0 Global Platform will underpin a wide range of low-cost combustion engine models from minicars to seven-seat vehicles in growth markets.

VW Group has tasked Skoda with turning the MQB-A0-In platform developed for India into a highly flexible architecture targeted at the price-sensitive markets of Russia, Latin America, India, Africa and southeast Asia.

In Europe, VW Group is creating a Scalable Systems Platform (SSP) that will underpin electric cars with advanced self-driving features for brands including VW, Skoda, Seat, Audi and Porsche, starting in 2026.

Previously platforms were developed first in Europe then rolled out globally. “For the next level, we will not have the basis in Europe,” said Skoda’s Jiri Dytrych, who leads the MQB-A0 project.

Creating a groupwide low-cost platform will enable the automaker to be successful in growth markets, Dytrych told Automotive News Europe in a phone interview

Skoda says the sales of combustion engine cars in the targeted markets will grow by 58 percent to 7.5 million over the next 10 years, then by another million in the five years after that. This means volume will reach 8.5 million vehicles by 2036 -- a year after a European Union rule comes into effect that will allow only zero-emission cars to be sold in Europe.

Scalability is key

The MQB-A0 Global Platform will be flexible enough to underpin cars under 4000 mm in length and up to 4500 mm to 4700 mm long, Dytrych said.

This platform has to be as scalable as possible,” he said. The largest version will be able to accommodate seven-seat vehicles.

Dytrych said Skoda now has a free hand to develop the platform to meet local market expectations because vehicles that use it will not be sold in Europe.

The first cars on the MQB-A0 Global Platform will launch after 2025, he said.

The platform will not be aimed at Europe or China, where small internal combustion engine cars such as the Skoda Scala and VW Polo use the MQB27 platform, which will continue to be developed.  

Stringent new emissions and CO2 regulations including Euro 7 in Europe and similarly tough targets in China will mean the regions will need different strategies from emerging markets, Dytrych said.

Hybridization possible

The MQB-A0 Global Platform will be developed with the possibility of hybridization depending on local emissions requirements, but it will not be suitable for full-electric cars.

"We have previously combined electric and internal combustion engines on the same platform with Citigo-e, Seat Mii and VW Up, but it not the most effective option. So we'll concentrate on internal combustion engines for AO with possible hybridization.”

Skoda is aiming to reach similar levels of localization to the current MQB-A0-In platform, which the automaker says is built using parts 95 percent sourced in India.

Large suppliers will be encouraged to locate close to production in countries or regions such as Russia or Brazil to reduce import tariffs, comply with local content rules or take advantage of government incentives aimed at localization.

The platform will be targeted for use by Skoda and the VW brands, but other brands within the group could also tap into it.
The first task for Skoda is define the elements common to each region based on future legislation to find the economies of scale.

"We don’t want to find a solution only for one region that could have a big implication for another,” Dytrych said.
For example, Russia takes cyber security and crash testing more seriously than south America, while Indian buyers demand more smartphone integration than Russians, Dytrych said.

First for Skoda

The MQB-A0 Global Platform is the first time that Skoda has been put in charge of the worldwide development of a platform for VW Group.

VW brand CEO Ralf Brandstaetter said Skoda is ideally positioned to assume responsibility to develop the MQB-A0 Global Platform because of “its significant expertise in entry-level mobility.”

The strategy will bring economies of scale and synergies that will further increase profitability,” Brandstaetter said in a statement.

Skoda was given the job of creating cars for the Indian market after VW Group struggled for years to compete with India's biggest automakers, Maruti-Suzuki and Hyundai.

The MQB-A0-In platform formed the basis of the Skoda Kushaq small SUV, launched earlier this year, and underpins the upcoming VW Taigun for India. Skoda will also unveil the Slavia small sedan from the platform this month.