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Skoda to launch eight models in India news
13 May 2008

Bangalore: Volkswagen group company Skoda is planning to expand its product portfolio and will introduce a number of new cars in India that will see it entering into new segments such as multi-purpose vehicles (MPV) and the sports utility vehicles (SUV).

Skoda plans to introduce its Roomster multi-utility vehicle by the end 2008 while Fabia Combi, a longer version of the hatchback, and a new Superb sedan built on parent company Volkswagen's B6 platform will be launched by mid 2009. In 2010, the company will launch the Yeti sport utility vehicle.

Skoda FabiaAll in all the former Czech car maker has lined up eight models up for launch in India within the next five years and expects to sell 100,000 cars annually by 2012.

The company is also looking at launching small cars in India to benefit from the lower excise duty regime and enter the market for small cars. The company had till now resisted entering the small car mart and had preferred to continue hawking its sleek and stylish Octavia, Superb and Laura but is now working on an altogether new platform for its proposed small car project, that will be separate from the existing small car platform of parent Volkswagen, say company officials.

Priced in the Rs3 lakh to Rs5 lakh range, Skoda's small car will be launched in India before being offered globally, which almost makes it seem that the car maker is developing the car especially for the Indian market, and will debut within two years.

Skoda officials said India is a key focus market for the company. The company plans to sell 100,000 units by 2012, up from the current figure of 13,000 units.

India is also expected to be among the top three global markets for Skoda in the next five years. Of the 100,000 units the company planned to sell, 60 per cent would comprise small cars.

The company is also working on increasing local content in its cars in India in order to become more competitive. Currently Skoda India's cars on an average have local content of 15 per cent, which would go up to 50 per cent in the near term.

The last model Skoda India launched in India was the premium hatchback Fabia at the New Delhi Auto Show in January this year. Till now Fabia is the smallest offering from the Skoda stable. 

To support its growth plans, Skoda will expand capacity at its Aurangabad facility (where Laura, Superb, Octavia and the Fabia are made) by 50 hectares. The plant has the capacity to build 30,000 vehicles annually.

The company plans to begin producing the Fabia at Volkswagen's (VW) Chakan facility by 2009, which will free up space for the manufacture of other models at the Aurangabad facility. NNIncreasing space has become necessary as rising demand for its cars has pushed the waiting period for the car to more than two months. Construction work on VW's plant in Chakan is underway and should be completed by end of the first half of the next calendar year.

The company is also evaluating the option of launching the Polo in India in the latter half of 2009. The Polo is built on the same platform as the Fabia and will also be manufactured at VW's Chakan facility that has an initial capacity of 110,000 units on a two-shift manufacturing basis.

VW has already said that it will integrate its facilities in India to contain costs and have an uninterrupted supply of auto components.

Skoda Auto's and VW's plants are technically designed to cater to the production of any cars of the group companies, including Audi's.

In the next few years, all the three companies (Skoda, Volkswagen and Audi) will collectively manufacture about 15 car models in India, ranging from the most inexpensive of the lot - the Volkswagen Up - to Audi's A8 luxury sedan.

The Fabia was officially launched by Skoda in the Auto Expo in January this year and was the most expensive hatchback in its segment priced between Rs5 lakh to Rs7.68 lakh.

The car is available in three engine options - 1.2 and 1.4 litre petrol, 1.4 litre diesel but even though it falls under the mandatory 4,000mm length to be categorised as a small car, the petrol variant did not conform to the engine size specification of 1,200cc capacity. In March however, the company launched the car with a 1,200cc petrol engine, priced at Rs4.86 lakh-Rs5.80 lakh.

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Skoda to launch eight models in India