Skoda consolidating position

After almost a decade of its entry into the Indian market, Skoda Auto, part of the Volkswagen Group, is now focussing on consolidating its position in one of the world’s fastest growing car markets. Accordingly, it is all set to launch its sports utility vehicle (SUV) Yeti, besides chalking out plans for India launch of its new compact car that is now under development. Buoyed by the tremendous response at the recently concluded 10th auto expo in New Delhi, the Czech automaker will be taking unique initiatives that include selling cars online and opening boutique outlets, besides launching new variants of the four models it currently sells in India.

Explaining the importance of the Indian market, Skoda Auto’s Member of the Board (Sales and Marketing) Reinhard Fleger told The Hindu that “The Indian automobile industry continues to be among the most promising car industries across the globe that would continue to grow in the coming years backed by an estimated economic growth of about 7 per cent. Skoda has a share of around 25 per cent in the mid-size segment. We have aggressive plans for the Indian market and aim to emerge as a major player. The launch of Yeti is an integral aspect of this plan.”

Yeti, which is one of the best-selling SUVs in Europe, is likely to be launched in mid-2010. Initially, the top-end variant would be made available in India followed by more engine and model options. “We hope Yeti will help us capture 10-15 per cent share in the SUV market. Overall, we are doing exceptionally well. Globally, India will emerge among top five markets for us from the 11th position now,” said Skoda Auto India’s Member of the Board (Sales and Marketing) Thomas Kuehl.

To address low-cost car markets like India, Skoda had already begun work on a car smaller than Fabia. “Work on the ambitious project is now on at our headquarters. We will surely be launching the car here and use India’s low-cost advantage to our benefit for this model,” he said. The car is likely to be launched next year. Skoda also plans to leverage India’s low-cost manufacturing advantage.

About expanding Skoda’s reach in India, Mr. Kuehl said the company was planning to add to its existing network of 65 dealerships to cover more cities and towns. Its initiative to sell cars online has also been a hit and now the company wants to make it a permanent feature to boost sales.