Skoda Auto India, the Indian arm of the Czech automobile manufacturer Skoda is considering increasing the production localization in India with the aim of cutting down the developmental cost of cars and increase domestic volumes.
The carmaker has been witnessing slow growth and low volume sales in India. According to industry experts, the reason is the premium pricing of the Skoda car models in addition to brand perception and lack of new products.
As per the information provided by the Society of Indian Automobile Manufacturers (SIAM), the Czech automaker sold 5,692 units in the April-August 2014 period, declining by 32.78 percent against the sales for the same period in 2013.
By increasing localization, the carmaker looks to price its products more competitively and expects to boosts sales by attracting a larger customer base. Mr. Sudhir Rao MD Skoda Auto India states that the automaker is working on Project Rapid which is focused at bringing down costs, without compromising on quality or content.