Skoda to set up manufacturing units for small cars in India

Small cars from Skoda in India soon

16 May, 2008

Europe’s cars are set to roll out of Indian bases. After Asian majors Suzuki and Hyundai kick started their manufacturing facilities in the country, it is now time for an European player. According to industry sources, Skoda is set to make India its base for manufacturing small cars.

The VW group major has a plant in Chakan near Pune and shall roll out its first Fabia next year. The company has said that it would up capacity from current 50,000 units to 1 lakh units annually and exports are to happen to markets such as Nepal, Bangladesh, Sri Lanka and Myanmar.

With the company deciding to have its key manufacturing facility with high local content, the sales targets have also been doubled to 25,000 units this year from 12,000 units in 2007. The company feels that it shouldmake its Aurangabad facility its local production base by 2010.

Apart from being the manufacturing hub, Skoda is also planning to expand its product portfolio and will introduce a number of new cars in India that will see it entering into new segments such as multi-purpose vehicles (MPV) and the sports utility vehicles (SUV), said a report. The car maker is likely to debut its Roomster multi-utility vehicle by the end 2008. Besides, the Fabia Combi, a longer version of the hatchback, and a new Superb sedan built on parent company Volkswagen's B6 platform will be launched by mid 2009. In 2010, the company will launch the Yeti sport utility vehicle, the report added.

The company is also looking at launching small cars in India to benefit from the lower excise duty regime and enter the market for small cars. To be priced in the Rs 3 lakh to Rs 5 lakh range, Skoda's small car will be launched in India before being offered globally, it has been reported.