To shed its premium tag and ramp up volumes in the Indian market, Czech car maker Skoda is increasing localisation levels and rationalising prices across the range of products it offers in the country.
"We are focusing on reducing the cost of ownership of Skoda products. We are perceived mostly as an urban brand, one focused on the premium end of the automobile market. We are also working on improving localisation levels for our vehicles, the benefits of which would be passed on to our customers. A comprehensive growth strategy to penetrate deeper into the country with our range of products would be in place by the end of the year," said Sudhir Rao, managing director, Skoda India .
Rao declined to specify the quantum of rationalisation planned for the price points at which the company offers its vehicles in India. He said a major proportion of the equity infusion of Rs 300 crore announced recently would be used to source more components locally.
Skoda sells premium hatchback Fabia, sedans Rapid, Laura and Superb and sports utility vehicle Yeti---all priced between Rs 5.29 lakh and Rs 24.74 lakh.
"Organisationally, we are doing a lot of things. New positions have been created in the company over the last few months to focus aggressively on India operations. The position of an India managing director did not exist before. We are finalising the blueprint on new launches. But on the distribution front, we want to expand rapidly and set up 150 outlets by 2014-15," Rao said.
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