Skoda India, the Indian subsidiary of the Czech automobile manufacturer Skoda is planning on increasing localization levels in production in order to lower prices of the Fabia hatchback. By lowering the prices on the hatchback, the company expects to make it more competitive in the Indian car market.
The localization level at present stands at 50 percent for the Fabia and is slated to increase to 80-90 percent. The company also plans to set up an engine plant in India to effectively implement the increase in localization.
The move by the Czech car manufacturer is aimed at increasing its market share in the Indian auto industry and is part of its five year plans to garner a 4 percent market share by the year 2016. Among other steps being taken by the automaker to achieve this feat are restructuring of the organization, improving its service and reducing the cost of ownership of Skoda cars.
According to Mr. Sudhir Rao Managing Director Skoda Auto India, the carmaker will focus on creating a favorable perception for its car products in the Indian market in terms of cost of ownership. He added that the localization of the Fabia hatchback will be the first step towards this new strategy.