The Czech car manufacturer – Skoda Auto India will soon venture into the next phase of expansion with launch of more products and higher localisation.
Apart from giving facelifts to existing models, the company is also looking at launching a sports utility vehicle (SUV) along with a re-introduction of its small car, Fabia. The company will, however, stick to premium pricing rather than compromising to increase volume sales.
According to the company's managing director, Sudhir Rao, Skoda Auto India is at the bend of a robust and sustainable growth phase. It is also in the process of fixing past issues related to after sales and operational losses.
For the Czech manufacturer, the Indian journey has not been smooth ever since it began operations in 2001. Last year in May, the company discontinued its only hatchback – Fabia in India. There has been no major launches by the company, apart from Octavia, which was re-launched last year.
At the premium end, Superb got a facelift in January this year and will be followed by a similar move of its only SUV, Yeti shortly.
Among the other models it sells are Rapid, Octavia, Superb and Yeti
Going by the past numbers, the company sold 34,089 units in financial year 2011-12, as per the data by Society of Indian Automobile Manufacturers. Its volumes slipped 14.7% in FY13, and 31.3% down thereafter in FY14.
The company is also looking at launching a bigger SUV going ahead. "Globally we have talked about `A plus' SUV – a seven-seater – which is larger than the Yeti. Yeti is what we call an `A' SUV. The new `A plus' is expected to be launched globally in 2016-17," said Rao. The company however did not give any timeline for the launch.
Rao further said it would also look at relaunching the Fabia. The new Fabia is due for a launch globally by end of this year. "Fabia initially started in a nice way with slight premium pricing. Without talking about the future products, I would like to say that it is important for us to be in that segment, but it is also important for us to do it in a right manner and ensure that we identify a sub segment in that category that is looking for a little more premium. Yes, we are looking at a Fabia replacement but will stick to Skoda's image," said Rao.
The company is also further looking at higher levels of localisation for its products like Rapid. The current level of localisation is around 60-65%, while the company is looking at a percentage of around 80% going ahead.
Apart from the products, the company has been largely addressing the after sales service and customer satisfaction issues. The company said that it has made decent progress, which will start reflecting on its volumes soon.
The company which is already in the process of realigning its operations in India, said that it is closer to its turnaround in India. According to sources, the company has downsized its number of employees from 400 to 300, out of which a certain amount of employees have been relocated to its sister companies.
"We don't talk about our financials but what I can say is that on an operational basis, we have improved our financials. We are building our strategy on sustainable future and we are on track. We have earned some credibility with the headquarters," said Rao.
