The Czech car maker Skoda commands a premium image in the Indian market. The company was first to introduce an affordable luxury car with the launch of the Octavia back in the early 2000. Skoda launched a slew of products like the Fabia, Rapid, Yeti and Superb in India, but none could help the company to increase market share and be a volumes player.
The company launched the Octavia in 2013 after briefly discontinuing in India and Fabia has slowly phased out. The Rapid is the sole product which forms the bulk of sales and recently also received new features to make the car more appealing. All this is not enough to keep the Czech car maker to be volumes players and now plans to enter the new sub-four metre compact sedan race. Skoda is contemplating to launch a new sedan under four metres and will compete with the likes of Maruti Suzuki Dzire and Honda Amaze.
The 2014 Auto Expo saw three new products in this segment with Tata Motors showcasing the Zest, Hyundai unveiling the Xcent and Ford displaying the Figo Sedan concept.
Skoda will launch the next gen Fabia in 2016 and we could expect a similar timeline for the compact sedan. Skoda’s offering will be premium in terms of design and fit & finish. The car will be made at the Chakan plant where the Fabia, Rapid, Polo & Vento are made. Volkswagen is also considering to launch a sub four metre sedan and the badge engineering will help the group company to make higher volumes.
Skoda has very little time considering the competition has already intensified with more companies planning to launch a model in this segment. With Skoda’s dwindling sales, the compact sedan could be a breather for the company.
Source: ET
