Skoda Low-Cost Car For Emerging Markets Reportedly Coming By 2020

Despite failed talks with Tata Motors, Skoda is still looking to produce a budget car for emerging markets.

It's still too early to talk about its underpinnings, or engines, but the brand already has "a series of ideas" for such a vehicle, which will be first sold in India, and then in other emerging economies, such as Iran, and Brazil, AutoNews reports, citing VW's head of strategy, Thomas Sedran.

Skoda's budget car should be launched by 2020, and, at this point, it won't have anything to do with Tata Motors, after the Czech brand ended talks with the Indian automotive giant. Tata kept pushing its idea to use their AMP platform on such a car, and Skoda rejected it, fearing that it would need further investment to meet the future crash-test and emission requirements.

Previous reports revealed that the Volkswagen Group is also interested in launching a cheap car in emerging markets, but under a budget brand. Such a vehicle, which is apparently in development in China, with the brand's local joint-venture partner, FAW, was confirmed by execs within the company, and it should be followed by an affordable SUV.

Note: Skoda Citigo pictured