Volkswagen group's fully owned subsidiary Skoda Auto would infuse fresh capital of over Rs.300 crore in order to propel its growth in the emerging Indian market. The Czech auto major eyes to achieve a growth of 1.5million unit sales by 2018 in order to achieve the target. Skoda is undertaking a slew of measures and one of those measure include incorporating a new line of leadership under a new organization structure. Apart from the exceeding its investment in India to increase localization and pump up production, the company is working extra time to develop new model line up to fuel its share in India.
India is one of the key markets of the growth strategy therefore Skoda is going to rope in a structural strategy which the company is also going to use in other major markets to manage future growth. Skoda India has appointed Sudhir Rao as the new managing director of the company as the first step in the structural management also the company has introduced a new line of leadership in the sales and marketing department. Skoda’s latest investment is going to amplify the localization and expansion of production capacity of its Aurangabad facility. Skoda has a strong foothold in luxury range of the Indian car market, and now the company has to work on the price strategy to lure the larger Indian audience. Skoda in itself was strong enough to deliver pack of punches towards its rivals and now reallocating its position with Volkswagen has taken things a notch higher.
Skoda slowly and gradually is coming out of its premium car tag and is going to help the brand to become a mainline player from a niche player. The rave reviews Skoda Rapid is getting along with the strategic entry of compact vehicles like Citigo has set the mainline player wheels in motion given the company gets the pricing and improve on cost of ownership with sturdy product line up. Skoda has laying emphasis to build a strong army of dealerships in India across the nation and with the competitive model lineup however, the company aspires to achieve higher volume and appeal to a wider target market.