Volkswagen may limit Skoda’s operations in India

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In view of it’s not so Superb performance in the Indian market, Volkswagen India might limit group company Skoda’s operations in India. The Czech auto-maker has failed to garner volumes despite being in the market for a decade and a half and started off quite well with the Octavia.

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Mahesh Kodumudi, President and MD of Volkswagen India in a conversation with ET, said that Skoda managed a poor market share of 0.8% at the end of 2013-14 and new ideas are being considered as they re-align their Skoda strategy. The news comes at a time when Volkswagen itself has scaled down it’s performance targets for India. Volkswagen is now concentrating it’s efforts to achieve a market share of 7-8% by 2018, as against the 20% they projected earlier.

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Mr Kodumudi said they are considering if Skoda needs to be positioned as a Mainline brand, as it’s not necessary to be a mass-market player at all times. He added that it makes no sense making and selling products at a loss, so they will decide on what needs to stay and what can be packed. However, Mr Kodumudi confirmed that Skoda will not be pulled out of India altogether, neither will the operations be scaled down in a big manner.

 

Source: GoodfolksatET

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