Saturday 10 May 2008

Skoda plans small car for India

Czech auto giant Skoda is stepping on the accelerator and plans five new launches in India, including its global small car that will debut next year. These introductions will see Skoda entering into new segments like multi-purpose vehicle (MPV) and the sports utility vehicle (SUV).

Speaking to TOI, Thomas Kuehl, member of the board Skoda Auto India said, “We will launch a compact car in the Rs 3 lakh to Rs 5 lakh segment, below our existing small car offering, Fabia. India will be the first global market where the car will be launched.” The new global small car is being built on a completely new platform at the company's headquarters in the Czech Republic.

The automobile growth story has prompted many global car manufacturers to make India their launch pad before entering markets like the US and Europe.

The Zen Estilo, Swift, SX4, and Dzire from the Maruti Suzuki stable and Hyundai's i10 have all had their debut in India. Maruti Suzuki's concept A-Star, that will be rolled out by year-end, will also make India debut. Skoda will first bring in MPV offering Roomster, which will be launched by the year-end. “Next year, we will launch the new Laura, Octavia and mostly likely the Fabia Combi. In 2010, we plan to launch an SUV as well,” said Kuehl.

For Skoda, part of the Volkswagen Group, India will be a key focus market. In the next five years it plans to sell 100,000 units, up from the current figure of 13,000 units.

“We expect India to be among the top three global markets for us in the next five years. Out of the 100,000 units we plan to sell, 60% of the volumes will be driven by the small car market,” said Kuehl.
Going forward, India will also emerge as Skoda's export hub for the Asean region. “We are looking for more land in Aurangabad to expand our production facilities,” is all Kuehl revealed.

On the pricing front, the company is working towards being more competitive by increasing the localisation content. At present Skoda fleet in India has an average localisation content of 15%. The company is looking to achieve 50% localisation in the next 18 months.

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