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Skoda’s India Story
Over the last decade, many foreign car manufacturers have successfully carved out a niche for themselves in the Indian car market. One of the most notable of these is premium car manufacturer Skoda Auto. Skoda has been making cars for more than a century. However, it started operating in India only from November 2001 after opening its manufacturing plant in Shendra on the outskirts of Aurangabad. It’s dealer network covered only Mumbai and Delhi regions at the time. From its humble start, Skoda has come a long way and is now a well recognised brand in the eyes of the Indian public.
Skoda Auto is headquartered in the country of Czech Republic and was established in the year 1895. In 1990, the Czech Government yearned to collaborate with a popular foreign brand and this resulted in Skoda Auto becoming a subsidiary of the largest European car manufacturer Volkswagen. Skoda is Czech Republic’s largest company in terms of revenue, producing about 10% of the country's exports. It develops, manufactures, and markets passenger cars worldwide and has been popular for its ability to cater to individual comfort, safety, and mobility. Skoda cars are recognised for their distict yet stylish looks, well built exterior, and expansive array of comfort of convenience features.
Skoda’s move to the Indian market was a result of its belief in the potential of the growing Indian car market and it has been proved right. Skoda’s first cars in India were well accepted by the Indian population and their combination of modern technology and sturdy build in cars was an immediate hit. The Aurangabad factory is Skoda’s first ever manufacturing plant outside Europe. It has a manufacturing capacity of 30,000 units. Skoda currently has a network of more than 50 dealers spread across the country, has setup 35 different facilities, and proudly boasts of a 25% market share in the luxury car segment. The company recently topped the J. D. Power Asia Pacific car sales satisfaction survey for 2008.
Skoda currently offers four car models in India of which three are sedans and one is a hatchback. The most popular of the three sedans has been the Skoda Octavia priced in the range of Rs. 8-10 lakh. The other two luxury sedans – Skoda Laura and Skoda Superb – are priced at around Rs. 20 lakh. The hatchback Skoda Fabia was introduced at the start of this year to benefit from the popularity of small cars in India.
After its success in the Indian market, Skoda seeks to make India its base for manufacturing small cars for the world. As it has currently established itself only in the sedan and hatchback segments, Skoda has drawn up plans to expand its product portfolio and is looking forward to foraying into new segments such as Multi-Purpose Vehicles (MPV) and Sports Utility Vehicles (SUV). However, the small car segment can never be ignored as the Indian Government offers several incentives in this segment. As such Skoda has several small car launches planned too. Following the story of the Hyundai i10, Skoda hopes to launch a small car model in India first before offering it to the global market.
