Skoda Auto entered India in November 2001 and hasn’t been able to crack the hatchback segment yet. The Czech automaker sold a mere 215 units of the Skoda Fabia in India last month, while its sibling, the Volkswagen Polo sold 3498 units. The reason for the poor sales can be the confusion created by the Volkswagen Group. While at one end, the company clearly portrays Skoda as a economy brand, at the very other the pricing doesn’t reflect the same. The Rapid is priced a few thousands less than the Vento, however the Fabia is priced more than the Polo! The Polo range starts at Rs. 5.45 lakhs, while the Fabia range starts at Rs. 6.27 lakhs (on-road, Mumbai).

Read the Skoda Fabia Test Drive Review

The same pricing structure continues throughout the Fabia and Polo line-up where the VW branded car is cheaper by a few thousands. Volkswagen has axed the Polo 1.6 and Skoda will do the same soon. Skoda recently launched the Fabia Scout which has failed to move things for the company. At a price of Rs. 9.62 lakhs, the Scout is no different mechanically then the regular Fabia. Even the Fiat Grande Punto outsold the Fabia consecutively in the last three months. The Grande Punto sold 619 units in July 2012. The Rapid continues to be the best selling Skoda car in India, with 1505 units being sold last month. Overall Skoda’s India sales have decreased 58.46% over June 2012.

Skoda plans to revive sales of the Fabia by reducing the price of the car. The company is looking to increase local content which would help them go aggressive with the pricing. This move will be a stop gap method till the next generation Skoda Fabia comes in 2014. Skoda will also bring in the next generation Octavia along with the European Rapid in India by 2015. The company is awaiting VW’s green signal to bring the CitiGo small car in the Indian market. These vehicles can help Skoda boost volumes significantly.