Skodas new policies aimed towards increased market presence

Friday 14 September 2012, 12:09 PM by

Skoda Auto India, the completely owned division of Volkswagen Group, has asked its senior employees to improve their performance, following the company’s aggressive strategies. With the implementation of its new plans, the Czech based car maker seems set to increase its hold on the Indian auto market. The company has somewhat fallen short of leaving a substantial impression on the Indian auto sector as its share was floating somewhere around 1 per cent, despite of the fact that it made its foray in the car market in November 2001.

The Managing Director of Skoda India, Sudhir Rao told to TOI, “Yes, we have put ten people on probation for performance improvement. There are certain areas where we need to improve and we have started working on this aspect through this exercise.”

In fiscal 2012, Skoda India delivered 34,089 passenger vehicles in the total 26.2 lac units market and thus, the company wants to pace up its market presence in the country. The auto maker has also publicised its desire to introduce new models in the country in a few couple of years, which will help it to achieve the target of selling around 1.75 vehicles annually by the end of 2017.

In the second week of September 2012, the company officials organised a meeting with its dealers, stating aggressive plans of the company. The distributors of Skoda Auto were also asked to concentrate over increasing their volumes. Skoda's senior officials said that the company is now planning to shift its focus towards the hatchback segment, which is the most high potential sector in overall auto industry sales.

Presently, the company has only Fabia hatch to put on sale in the small car segment and owing to this, Skoda earlier declared that the company is planning to introduce its Citigo hatchback, which was initially designed for the European market. The global Chairman of Skoda, Winfried Vahland told TOI, “Citigo also has a potential in a market like India. It is in the investigation phase now.”

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