Report – New Fabia’s Indian launch depends on Skoda’s performance next year says MD

Posted on: Jun 28, 2014 - 9:17am IST

As Skoda is preparing itself for the next generation Fabia, due for an unveil at the Paris Motor Show this year, the Indian operations of the company is grappling with falling sales. Sales of Skoda India’s volume product, the Rapid, have dropped from 1,188 units in January 2014 to 785 units in May 2014.

2015 Skoda Fabia IAB rendering
The new Fabia is not on Skoda India’s current focus. Seen here is our artist’s rendering of the car.

Going forward, Skoda India’s Managing Director, Mr. Sudhir Rao, said that his company is going to focus on the “value for luxury” segment rather than the volume segment, and that the immediate focus is on the Rapid’s segment and above. Mr. Rao said that the segment below the Rapid will be considered depending on “results on new strategies”, and if these results showed a profitable and sustainable model. However, the sub-Rapid segment would not be on Skoda India’s focus until end 2015.

The managing director said that his company is focusing on lowering the cost and increasing localization of their products. Skoda India’s localization level stands at 60 percent at the moment. A refreshed Rapid with a new 1.5-liter diesel engine (which will debut on the 2014 Polo launching next month) will probably see increased levels of localization, and is slated to launch this year.

Skoda Yeti facelift front at Auto Expo 2014
A refreshed Yeti and Rapid will launch this year.

Skoda have also confirmed the launch of the refreshed 2014 Yeti, and sources tell Indian Autos Blog that the SUV will arrive in the September-October period this year.

[Source – Economic Times]

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5 thoughts on “Report – New Fabia’s Indian launch depends on Skoda’s performance next year says MD

  1. guru g says:

    Dear Anjanji /Shrawanji /IAB,

    Please be kind to answer to your readers’ queries.

    GG

    Reply
    1. Hello! I guess its a bit of both? Our critical point is that Skoda has to reach a cruising altitude in India. They have found it reasonably easy to sell sedans in the INR 12-20 lakh bracket in India (Octavia, Laura, Superb and the new Octavia have all done well) and logically the next step is to get into the C segment. The Rapid can definitely be the backbone of their business if they can localize it further, introduce new variants, and keep it fresh as the numbers in the C Segment are very good, and competition is not as intense as in the B Segment.

      Reply
      1. guru g says:

        Thanks a lot Shrawanji.

        Skoda India has more than a decade of experience in India and is still at the bottom of the OEM sales chart with under 1%! market share.

        You are very optimistic with your comment on Skoda India ever achieving “cruising altitude” in India.

        GG

  2. guru g says:

    Has Skoda accepted defeat or has new sense dawned upon?

    Mr. Anjanji can you give your critical point of view of this situation?

    Thanks and looking forward to your reply.

    GG

    Reply
  3. guru g says:

    Mr. Sudhir Rao needs to be clear of what he wants to achieve than keep changing his stance.

    How will investors in Skoda such as vendors and retailers otherwise plan their business.

    In Sep 2012, Mr. Sudhir Rao claims ‘Skoda Fabia to be localised further, made cheaper in sales drive’
    Link here:
    http://articles.economictimes.indiatimes.com/2012-09-11/news/33763030_1_fabia-hatchback-skoda-plans-skoda-auto-india

    Even after nearly 15 years in India, Skoda seems to be more confused than ever.

    Has Skoda accepted defeat or has new sense dawned upon?

    Mr. Anjanji can you give your critical point of view of this situation?

    Thanks and looking forward to your reply.

    GG

    Reply

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Anjan
Anjan Ravi

I'm a true-blooded petrolhead. Hope you enjoy our news stories, launch coverages, motorshow coverages and test drive reports.