Skoda Looking To Launch Multiple Products Under Tata Motors Partnership

As per TOI, the Czech carmaker is looking at ways to make a comeback into the highly lucrative and high-volume small car category, additionally, to introduce a mini-SUV and an entry-level sedan.

The vehicles are expected to hit the Indian market by 2019 and would be the outcome of the joint product strategy with Tata Motors. Skoda is looking to target the mass market segment with these new products.

Skoda India had offered its entry-level player with the Fabia premium hatchback, while it was praised for its technology and engineering, the Fabia did not succeed as the Octavia in India due to dealer issues and its steep pricing in the price sensitive market.

The reason behind Skoda leading from the front is from Volkswagen's MoU with Tata Motors that was signed in March 2017 to explore a strategic alliance possibility for joint product development.

As per sources, Tata Motors' Advanced Modular Platform (AMP) could be one of the directions that could be explored for new products. The AMP is considered as a highly flexible design that can spur a variety of vehicles.

Skoda is currently revamping its Indian operations to tackle issues such as poor service quality and declining customer confidence.

Sudhir Rao, MD of the company, told TOI that "Service quality and customer experience at dealerships were critical elements for us and something that required attention. We have worked tirelessly to fix issues around this area and are now set to move ahead with the product strategy,"

The company had cut dealer strength from 100 to close to 65 to have a leaner, "but more effective", network, Rao said.

With Skoda looking to enter the compact vehicle segment, it is indeed good for the Indian automobile industry to have competitive companies trying to get into the space that is being largely held by a single company.