Skoda wants to invest INR300 crore ($56.25million) in the Indian auto market operations to boost production and increase localization.
The investment will be focused on expanding production at the Aurangabad facility in Gujarat and will help the company reach its goal of 1.5 million units sold by 2018. The company also plans to introduce new models, besides the recently launched Skoda Fabia Scout in India.
“To handle our future growth plan and its cross-functional tasks for the very important Indian market, it is necessary to have a corresponding management structure,” said Juergen Stackmann, Skoda Auto Board member in charge of sales and marketing.
The company has also made changes in its organizational structure. Until now Skoda has made comparatively smaller investments in India so this investment shows the growing importance of this country in the company’s global plans. After the launch of Volkswagen cars in India, Skoda has emerged as a strong brand in this country thanks to its Laura, Superb and Yeti models which are cheaper than similar Volkswagen models leading to a visible increase in sales. With a strong image in the premium car market Skoda aims at enhancing its reputation in the cheaper segment and works on it pricing to attract the larger audience.