Skoda to Start its Finance Wing for its Cars in India

Thursday 25 September 2008, 00:00 AM by Satish

Czech auto maker is set to launch its finance operations in India to finance its cars in the country. The finance wing will start its operations by the end of the current year and will provide easy financing schemes to its customers. Skoda has taken this step to combat the falling sales problems which are triggered mainly due to high interest rates from the banks and their tightened norms. Banks and other financial institutions have tightened their string to provide loans in India in the wake of ongoing economic crisis.

Skoda is also expanding its operations in South India. It recently inaugurated its showroom in Gudavalli in Andhra Pradesh on 20th September 2008. It is the third in the state after its existing showroom in Hyderabad and Vishakhapattanam. South India accounts for nearly 30 percent of its overall sales and the company intends to expand its market share in the region due to a favourable response.

The company is also planning to launch a cheap car for the masses in order to occupy a larger market share. According to Jaroslav Cerny, Skoda India, the concept is under consideration as the company views Indian market as a very promising one. Skoda plans to sell 20000 units in the current calendar year and has already sold 9556 cars in the first six months itself. It sold 13000 units in 2007 calendar year. It sold 1103 vehicles in August 2008 as compared to 900 units in the same month last year. It has its manufacturing facility in Shendra near Aurangabad.