Skoda's new city car would be based on the parent company VW's Up! platform. The new car might be named "Popular."
The Popular is aimed at developing parts of the world where there is an ever lasting demand for small and economical cars. The city-runabout would make its first appearance in 2012, and we've dug up evidence proposing its Indian connection a while ago.
Skoda is looking to establish itself as a compact car maker. It does have SUVs and grand sedans in the line-up, but its plans going into the future insists there will be more budget than frills and flair. There's the bigger hatchback that will slot inbetween the Fabia and the Octavia and plans to make a low-cost Octavia for India and other Asian countries.
The new small car could be part of a two prong strategy. With all the bells and whistles, it could challenge the might of the Fiat Topolino, Toyota iQ and Smart Fortwo while on the other hand, a low-cost model could be meant for Indian consumption.
The new Pune facility will produce both VW and Skoda cars signalling a strong possibility of it being manufactured alongside the Up! in the future.
The Skoda Popular will be 3.5 meters in length, short enough to qualify for tax benefits.
Source - Alla Guida