Skoda Auto Volkswagen India plans to introduce an eight-speed automatic transmission (AT) in its model lineup by 2026. The new transmission is designed to improve performance, fuel efficiency and driving comfort to meet the diverse needs of Indian consumers. The move is part of the group’s strategy to provide advanced technology and remain competitive in the growing Indian market. The eight-speed automatic transmission is expected to enhance the appeal of Skoda and Volkswagen, targeting buyers who value convenience and efficiency. By integrating this transmission, the group continues its commitment to aligning with global standards while catering to local preferences.
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Skoda and Volkswagen will be equipped with new 8-speed AT gearbox
The new eight-speed torque converter automatic transmission will debut in 2026 on India 2.0 models of both brands, including Kushaq, Slavia, Taigun and Virtus. Sourced from Japan’s Aisin, the new gearbox will replace the six-speed automatic gearbox (AQ250) currently paired with the 1.0-litre TSI turbo-petrol engine. This update is expected to follow the mid-cycle update planned for 2025, which will be released six to eight months later.
The new AQ300 transmission is expected to increase efficiency and will be designed to meet upcoming Corporate Average Fuel Economy (CAFÉ) III regulations. While the existing six-speed gearbox also comes from Aisin, it is not manufactured locally in India. Skoda is exploring the possibility of local production of the eight-speed unit, although challenges related to low production volumes may affect its viability.
Skoda India Brand Director Petr Janeba outlined the company’s plans to achieve cost efficiencies through economies of scale. Once the new gearbox reaches the necessary production scale, the Czech automaker aims to get other automakers in India on board to help support local manufacturing. In order to prove the local production of gearboxes, Skoda Volkswagen hopes that other companies such as Maruti Suzuki and MG Motor India, which currently use AQ250 gearboxes, will also switch to the new AQ300 models.
In addition to my country, Aisin also plans to produce newer gearboxes in Brazil, taking advantage of economies of scale to reduce production costs. As global demand for automatic transmissions continues to increase, increased production in India can further improve manufacturing efficiency.
The launch of the new gearbox is a key part of Skoda Volkswagen’s compliance with India’s upcoming CAFÉ III regulations. The eight-speed gearbox features more precise gear ratios, ensuring smoother transitions and lower fuel consumption during acceleration and deceleration, resulting in improved fuel efficiency and lower CO2 emissions, especially under standardized driving conditions.
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Although the exact time when the AQ300 will be introduced in India as a 2.0 model is still uncertain, it is expected to be launched in 2026 and not at the same time as the facelift in 2025. The update will mark a major advancement for Skoda’s Volkswagen product line. The transformation reflects the company’s focus on efficiency and regulatory compliance, as well as the possibility of industry collaboration to localize advanced technologies for the Indian market.
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