Skoda Auto India, the Indian unit of the Czech automaker and an entry level brand arm of the multinational conglomerate, Volkswagen Group, is strategising to cement a strong position in the Indian auto market by localising the production operations.
Major automakers in the country have resorted to localisation of the parts and components in a bid to curtail the cost of production for the car makers and cost of ownership for the buyers. Following the trajectory is Skoda Auto India, seeking to capture the mass market segment by refraining from the import duties and passing on the economy to the customers in the form of decline in the prices of its current portfolio.
Mr. Sudhir Rao, Managing Director, Skoda Auto India, was quoted as saying, “We are focusing on reducing the cost of ownership of Skoda products. We are perceived mostly as an urban brand, one focused on the premium end of the automobile market. We are also working on improving localisation levels for our vehicles, the benefits of which would be passed on to our customers. A comprehensive growth strategy to penetrate deeper into the country with our range of products would be in place by the end of the year.”
At present, the major determinants constraining the buyers in India are the high maintenance costs due to fabrication of imported components and the mediocre after sales service rendered by the Skoda authorised service centres. The company has chalked out comprehensive strategies to own a greater stake in the Indian auto market.
The company has announced an investment of Rs. 300 crore for sourcing parts locally and is gearing up to re-launch Fabia hatchback in a facelift version to give head on rivalry to its hatchback compatriots.
