Skoda Auto is planning to invest more than Rs.300 crore into its Indian operations, to enhance its growth in the still-developing Indian market. The Czech automobile major aims to post an overall growth of 1.5million unit sales by 2018, and to achieve its target, Skoda is taking many initiatives including the incorporation of a new leadership in a new organizational structure. The investment is aimed at increasing localization and boost production. Also, the company is burning the midnight oil to come up with a new product line-up to increase its market share in India.
Since India forms one of the key markets of Skoda’s growth strategy, the company is implementing a structural strategy which it will use in various international markets in order to fuel growth in the future. Skoda India has roped in Sudhir Rao as the new managing director of the company and has also ushered in new leadership in the sales and marketing department, which is crucial to achieve the company’s growth objectives. The fresh investment will enhance the localization and increase the production capacity of Skoda India’s Aurangabad facility.
Skoda, which is a fully-owned subsidiary of Volkswagen, already commands a strong presence in the luxury segment of India’s automobile market. However, to attract the average Indian consumer, Skoda has to rethink its pricing strategy since the small-car segment in India is one of the fastest growing segments in the market. The car-maker is slowly emerging from the luxury car-maker label and trying to join the mainstream Indian car market, competing with the likes of Maruti Suzuki, Tata Motors and Hyundai.
The Skoda Rapid has been pretty successful and its compact vehicle, Citigo, is helping it come out of the premium car tag. Skoda India is focusing on improving its dealership network across India and is introducing new cars catering to the needs of the larger majority of Indian customers. The company is right on track on its growth strategy and may soon emerge to be among the major players in the Indian car market.