Skoda India Struggling With Sales

By Ajinkya

Updated: Wednesday, June 25, 2014, 17:58 [IST]

Skoda is originally based out of Czech republic and is part of the VW group. They currently offer the Fabia, Rapid, Octavia, Superb and Yeti in India. However, these products have not wooed the Indian buyers recently.

The Czech manufacturer has been offering vehicles in India for a while now. This has not played to the benefit of Skoda and they have not been able to achieve their desired sales target. Its current mother company plans to restrict operations in India.

Mahesh Kodumudi, President and Managing Director of Volkswagen Group India, told our source, "New strategies are being considered for the Czech car brand that was the first within the VW group to set foot in India around 2001 but has not managed to cut much ice with customers, managing a poor 0.8% share at the end of 2013-14."

Also Read: Mahindra Monsoon Discount Offer!

Skoda had introduced the Fabia hatchback in anticipation that it would sell in high volumes. However, the vehicle took off well and then witnessed a dip, which it hasn't recovered from. In 201o to 2011 the Czech manufacturer reported selling 22,969 vehicles, while in 2013 to 2014 they managed selling only 19,959 vehicles.

Skoda sedans are doing a decent job, however, the competition is getting ever stronger. Honda, Suzuki, Toyota and Hyundai are providing more for less and taking customers away from the European manufacturers. The Czech manufacturer sells only the Rapid and Superb currently.

The mother company believes they have to study the situation and analyze the profitability, since there is no point manufacturing vehicles and selling them for a loss. They will also decide which products are expected to yield benefits and which won't. They will then discontinue certain models and introduce a few others.

DON'T MISS: VIDEO OF THE DAY