In order to achieve their targeted market share of 4% in five years, Skoda is betting big on high localization of the Fabia to reduce its price. Localization will increase to 80-90% from its current figure of 50%. This move should have come very earlier. Currently the Skoda Fabia is selling in very poor numbers below 500 mark (last month it sold 291 units), which is not at all a good number for an entry level hatchback of any company. With this localization, Skoda wants to sell 75,000 to 1,00,000 units of the Fabia every year.
Skoda plans to launch the next generation Fabia in India by 2014. The company is already working on the updated model, which will have a huge improvement in terms of design and interiors. Skoda has already revised prices of the Fabia in 2010 and this is the second time they will be doing so. Recently Volkswagen revised prices of the Polo and Vento, which has made it even more difficult for Skoda to position its cars. Thus it is imperative for Skoda to revise its prices quickly.
Another issue with Skoda is the after sales service. Many owners have complained about the below average support from dealers. Skoda plans to address it and is focusing on improving its after sales service. The company will also expand its dealership network across tier-II and tier-III cities. Skoda will also bring in updates to its existing model line-up along with launching more vehicles in the Indian market. The CitiGo is still unconfirmed for a launch in India but could be launched within the next two years.
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vinod patrick September 11, 2012 at 6:29 pm
I own a Fabia 1.6 which i purchased in Nov 2011. I Love the car and love the brand but not the dealer. When i was out shopping i clearly went through the website and asked the dealer for the new model with 15inch rims and rear wiper who then told me this was only on the website and not being manufactured, which i have on email. i then wrote to the customer service from Skoda who did not even bother to respond to emails.
Skoda makes such lovely cars but their sales strategy is hopeless. take for example, the 1.6 can be branded a sports version when you have the premier driver of india Gaurav Gill using the S2000 version in APRC. i’m sure enthusiasts would then flock the showrooms but alas it is not so. i would love to write to Skoda but don’t have a genuine email id to write to a, voice my complaints and b, promote their product.
The fabia without doubt is a wonderful car. i drove across cities covering 370 kms in extreme comfort and good time considering the bad roads on the ghat section. Simply love the car
vineet September 11, 2012 at 6:53 pm
the same problem was with ford in their intial operations in india,now look where they have reached by improving the dealer network,skoda should learn from Ford
Nitten September 11, 2012 at 9:23 pm
You are absolutely right Vinod Patrick. A friend of mine also went through the same with Fabia 1.2 petrol when it was newly launched. Skoda is ruining its (almost) perfect cars but not paying much attention to it’s after sales n services.