Skoda envisions India as its future growth engine, planning a new compact SUV and an expanded sales network. The company is exploring partnerships wit
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The Czech carmaker, Skoda Auto is making a big push in India, its most important market outside of Europe. With a focus on new models, expanding its sales network, and potentially forging partnerships, Skoda aims to nearly double its sales volume in the country.
According to Skoda Auto’s global CEO, Klaus Zellmer, India is crucial to the brand’s growth strategy, a PTI report stated. The Indian passenger vehicle market is booming, registering a surge in annual sales. This growth potential, coupled with Skoda’s recent exit from Russia and stagnation in China, makes India a prime target for the automaker.
New models and enhanced localisation
Skoda plans to introduce an all-new compact SUV early next year, hoping to capitalise on the popular SUV segment in India. Additionally, the company is looking to learn from past experiences and adopt a more customer-centric approach.
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This includes increased localisation of production to offer competitive pricing. Zellmer acknowledges that Skoda may have over-engineered its cars in the past, leading to higher costs. The company is now committed to finding the “sweet spot” between quality and affordability.
Partnerships on the horizon
While Skoda is considering operating independently in India, Zellmer also sees the potential benefits of a partnership with an Indian automotive manufacturer. Such a collaboration could provide valuable insights into the Indian market and customer preferences.
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Discussions with potential partners are already underway, with the goal of establishing an equity partnership that benefits both parties. Notably, the Volkswagen Group, which Skoda belongs to, already has a partnership with Mahindra for electric vehicle components, demonstrating the group’s commitment to the Indian market.
Expanding sales network and exploring electric vehicles
Skoda Auto is actively expanding its sales network in India, aiming to reach 300 touchpoints by the end of the year. This expansion will focus on increasing brand presence in smaller towns and cities. Additionally, Skoda is exploring the electric vehicle (EV) segment in India.
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The company is considering introducing the Skoda Enyaq, its fully electric SUV, recognizing the projected growth in EV adoption within the country. Skoda’s strategy emphasises offering customers a variety of powertrains, including electric and efficient combustion engines.
India as an export hub
Skoda envisions India as a potential export hub. The company’s manufacturing base in Pune can serve as a springboard for exporting vehicles to Southeast Asia and the Middle East, said the CEO. By leveraging India’s production capabilities, Skoda can achieve new international sales targets beyond Europe.
Skoda’s aggressive strategy in India reflects the growing importance of the market. With new models, a focus on customer needs, a potential partnership, and an expanding network, Skoda is well-positioned to grab a significant share of the Indian automotive market.
First Published Date: 01 Jul 2024, 06:33 AM IST