It is a known fact that the Indian car market thrives on the hatchback segment, which accounts for the maximum percentage in terms of volume. India's top two passenger car makers, namely Maruti Suzuki and Hyundai, have also been hugely successful due their portfolio of hatchbacks, such as Alto 800, Swift, Ritz, i10, i20 and Eon. Interestingly, Czech-based auto maker Skoda has put its focus primarily on bigger cars, especially on the sedan segment. Officials from the company notified this fact at a recent event in Mumbai, where the third generation Octavia was unveiled.
Chairman of the Board of Directors for Skoda Auto, H C Winfried Vahland, was in Mumbai to attend the showcasing of the third generation Octavia. At this event, he spoke about the company's understanding of the Indian auto market and the subsequent policies. “I personally believe, as an international automotive manufacturer, we should look at worldwide global markets. I will make cars that will function and work worldwide. To make a specific car only for India… you don’t know where the segments will shift tomorrow,” said Vahland. “The segment below 4 metre is made by law and its not made by consumers and if consumers want bigger cars, that’s Octavia. My focus is what customer needs and not what legislation is forcing us to, because legislation can change tomorrow,” he further added.
The new Skoda Octavia, expected to be launched in the festive season, has high hopes pinned to it. Skoda India is hoping that the introduction of new Octavia sedan will breathe some life into the firm's state in India, which is not so good at present. Also, previous generations of this sedan have managed to strike an excellent rapport with customers and critics, something the firm would like bank upon. Vahland also spoke at length about how the Octavia completely suits the requirement of Indian buyers who want big cars. Analysts feel that although the company might not be able to be among the top ones, it certainly has the potential of carving a niche in the Indian auto market.
At present, Skoda India is enduring a torrid time in India as its operations have not been good in terms of volume. Statistics from Society of Indian Automobile Manufacturers (SIAM) suggest that Skoda India experienced a fall of 50 per cent in the sales for the quarter ending June 2013. Apart from this, the Volkswagen Group owned firm is also expected to discontinue the production of the Fabia hatchback, in case it fails to rise above its current position.
Sudhir Rao, Managing Director at Skoda India, spoke about the firm's future plans for India. “It is clear that India is going to play a significant role. The question is how and when. All that will depend on the kind of confidence – on the ability to invest, whether this is the right to invest, right environment to invest, etc. So it’s a question of adjusting the strategies as we go along, based on the short conditions,” he said.
