Skoda to reboot India operations

Last year the company managed to increase sales by 2.4 per cent to 15,368 units however volumes went in a free fall in the first quarter ended June

Czech car brand Skoda will launch four new products, upgrade its dealer network and overhaul its service initiatives to woo the Indian buyer, even as sales volumes remain a niggling concern.

The European brand, which is part of the Volkswagen Group, will launch a premium sports utility vehicle, a performance sedan, a volume segment car and an as-yet-undefined product next year.

Skoda India executives also stressed on Wednesday that the brand will not abandon the value luxury space, which has been its preserve and chase volumes like its mother company Volkswagen, which recently launched a compact sedan, Ameo, in the volume space.

“We believe the centre of gravity will continue to move towards more premium cars and we have already seen this happening in the entry hatchback space. We believe the value luxury segment is ours and we will work towards improving our share in it,” said Skoda Auto India Chairman & Managing Director, Sudhir Rao.

Last year, the company managed to increase sales by 2.4 per cent, to 15,368 units.

However, volumes went into a tailspin in the first quarter ended June, with a decline of 24 per cent, even as the industry reported a growth of seven per cent during the same period.

A total investment of Rs 100 crore was lined up at improving its brand and for network upgradation, all of which were funded by the India unit. Nearly Rs 60 crore has been spent already. A new brand campaign will be launched on September 1, which intends to ‘transform the overall brand and ownership experience’ of Skoda.

The modernised appearance is based on the new Skoda corporate design and identity.

The dealerships will now sport an attractive layout and reformed functionalities. Skoda has 70 dealerships across the country and will upgrade them by the end of next year.

“We are looking at volumes of 20,000 units by the end of next year, growing from 15,000 units, which we expect to sell this year. The incremental volumes will come from the new launches. We are looking at a market share of five per cent in India,” Rao added.

All the new products will be made at Skoda’s Aurangabad plant, as well as Volkswagen’s plant at Chakan (near Pune). Skoda officials declined to share the investment figure earmarked for the new products.

However, the company has ruled out relaunching the Fabia hatchback in India, at least for the next two to three years. After continuously disappointing sales of the mini premium car because of its high ticket price, Skoda was forced to phase out the Fabia a few years ago. But speculations were rife about a comeback.

The company will also introduce MySkoda mobile application which will provide customers with comprehensive information, data and facts about their car. The application has been designed to allow owners to access their previous service records, predict next service, call for roadside assistance, amongst other features.