Skoda India is looking at volumes eying a larger market share in the Indian market. The Czech carmaker has started working towards this strategy and will launch the new Fabia with a very high local content. Skoda is looking at a 4% share in the Indian car market in five years.
One important step the company is going to take is looking at the service and cost of ownership which has been biggest weakness for the brand mainly due to bad dealership service and expensive spares. Skoda is also changing its organisational structure as part of a new strategy.
“The immediate focus is to create the right organizational set up and changing or rather improving our perception (in the marketplace) on cost of ownership,” Sudhir Rao, MD of Skoda Auto India, said. “An all new highly localized Fabia will be cornerstone of that strategy,” Skoda plans to introduce the new Fabia in 2-3 years. It is expected to make or source 80%-90% of its parts in the country.
The new Fabia will be very competitively priced and the company expects to sell 75,000-100,000 units a year. Besides the new Fabia, Skoda will also launch new models and refresh of its models.
Skoda will also increase its dealer network and will look at various ways to improve customer ownership.
Image Source: Autonews