Skoda prepares to thrill with four new models

Czech automobile manufacturer Skoda Auto plans to launch four models next year. It is also setting up a financing outfit.

At present, Skoda sells four models in the country — the hatchback Fabia, and the sedans, Octavia, Laura and Superb. They are priced in the range of Rs 4.8 lakh to Rs 24 lakh.

Next year, there will be the Fabia Sports and Fabia Combi along with new versions of the Laura and Superb.

Skoda has recently launched its compact car, the Fabia, in India. It’s an upmarket hatchback priced between Rs 5 lakh and Rs 7.68 lakh.

The car is available in three engine variants — 1.2 and 1.4 litre petrol and 1.4 litre diesel.

The Fabia Sports will carry a tag of Rs 10 lakh, while the Fabia Combi is expected to be built on parent company Volkswagen’s B6 platform.

Skoda plans to sell 20,000 units in this calendar year against 13,000 last year. It has already sold 9,556 cars in the first six months.

In July, Skoda had raised the prices of all its models. The hikes were in the range of Rs 16,000 to Rs 25,000.

Finance arm

A credit crunch resulting from a tightening of lending norms by financial entities has prompted Skoda to set up the finance arm.

According to Thomas Kuehl, member of board (sales and marketing), Skoda Auto India, “Since 80 per cent of our total sales are financed, the company has decided to launch Skoda Finance in the country. It should be operational by the last quarter of this year.”

Companies such as Bajaj Auto, Tata Motors, Maruti Suzuki, Hero Honda, Mahindra and Mahindra are focusing on non-banking financial companies to help accelerate sales that have been lean in the past few months.

Hero Honda has tied up with Fullerton India, a non-banking finance company, to support purchases on the basis of loans.

Skoda India for increased marketshare in South India

On the sidelines of inaugurating its showroom at Gudavalli in Andhra Pradesh on 20th September'08, Skoda India has said that it is aiming to enhance its marketshare in the southern part of India by opening several such showrooms. It is the third Skoda showroom in the State, after the ones in Hyderabad and Visakhapatnam. The company has indicated that the number of units sold in South India account for one-third of its overall sales and it believes the new models would help it to shore up its bottomlines.

Mahavir Auto, the sole authorised dealer of Skoda India in the State, opened a 'triple S' showroom to offer sales, service and spare parts for Skoda cars in the coastal region. The dealer has notched up more than 6,000 units of Skoda models in the state. It is widely believed that the Indian arm of the Czech-based company would be setting up a showroom at Vijayawada as there are nearly 1,000 Skoda customers in and around that city.

According to a senior representative of Skoda India, the company which commenced its operations in India in 2001 could capture a 6 per cent market share in the luxury car segment from 4 per cent currently. The latest model, Fabia, was selling well and so far 5,000 cars had been sold, he added. He also pointed out that this was the country's only super hatch car, as of now.

The Czech company, which is part of the Volkswagen Group, came to India in November, 2001 and has a manufacturing facility at Shendra near Aurangabad, Maharashtra. The company aims to launch SUVs, MUVs and a car that would be priced below their Fabia model. Skoda India will also be expanding its dealership across the country. Currently, it has 56 dealerships and by 2009, it will be increased to 75 countrywide.

Skoda Fabia is currently their cheapest offering in the Indian market. They also sell Octavia, Laura and Superb.