[2cents]

Originally Posted by Heart_Revs

Hyundai Creta which does all things well for aam junta sells about 4500 copies a month.

Same thoughts here. Why does it appear such a mammoth task for Skoda-VW when Kia can do it bang on in its first year, that too with just one vehicle? It isn't about lack of suitable products in their portfolio, instead it would do them good to introspect where they are going wrong. Here's a pointer - I own a Skoda, it's a brilliant vehicle, but no way I'm buying one again.

[nkrishnap]

What matters is a C Segment SUV competing with the Seltos/Creta with features loaded and killer pricing undercutting the price of both these cars.

The diesel in the line is a must to have volumes. Hope they price the cars a bit more sensibly to ensure they get the volumes they are targeting.

[landcruiser123]

Skoda India needs to add about 85,000 units per annum- i.e. 7,000 units per month. Possible with a new sedan or hatchback.

Other than good products at the right price, they should also have more dealerships in tier 2 and tier 3 cities. Look at Maruti vs Skoda in Triruchirapalli for example:
(I know an uncle who loved the Rapid but bought the Ciaz as there was just one showroom)
MSIL: 6 points of contact


Skoda: 1 point of contact

[PrideRed]

Few problems for Skoda:

1. They have managed to establish a bad brand name in India and their efforts has not being paying off. While the mass market stays away from the brand, even enthusiasts think twice before investing.
2. India is price sensitive. Skoda does not seem to be interested in launching VFM cars, the cars like Rapid is a decade old. Don't expect numbers when you launch Karoq with absurd pricing.
3. Their reach/dealership spread is minuscule. You need presence in all tier 3 cities and also small showrooms at strategical places.

[Axe77]

Originally Posted by GTO

1 lakh cars / year is ~8000 cars / month. Skoda currently does ~1200 cars / month, so what they are talking about is a SIX - SEVEN times increase in volumes. Difficult, but not impossible. Look at how the


A single blockbuster product and another decently-successful line-up should do it. But will Skoda hit the bull's eye? Interesting times ahead.

Agree in principle but there is also the fact that Skoda has done NOTHING in the recent past that tells me they have that recipe nailed down. Given the competition they deal with and their own reputation, their pricing approach is totally flawed. The recent Karoq pricing only underscores how ill prepared they are to meet the above target.

[Nithesh_M]

This is like me expecting to be a Crorepati by 2025. Might happen if I invest in the right market but I'm also lazy and risk averse like Skoda and rather play it safe than be sorry.

[Kosfactor]

Here is their website at the moment.



What happened to the other cars? Does anyone know where this Karoq and RS245 is made?

[dr.aviansh]

Skoda and VW have been in India for 20 years and 13/14 years respectively and yet they have failed to realise that India is not Europe, it’s a developing country and hence a VERY price sensitive market.
In UK, if one has a budget of say Rs. 15 L, then the Europeans are happy buying VW GOLF, VAUXHALL ASTRA hatchback, TOYOTA COROLLA hatchback. But in India anybody paying above Rs. 6L would eye for the so called sedans because of the 3-box shape giving them a ‘badi gaadi wali’ feeling.

At least 90% of the cars that have flopped in India will have a pricing factor too apart from their other respective factors.

Last December, I was looking for a C-Segment Auto’ Sedan for myself.
The Ciaz AT was costing Rs. 10 L,
Yaris J CVT for Rs. 9.70 L,
Ameo TDI DSG for Rs. 12 L,
Vento Petrol DSG for Rs. 13.50 L
and Rapid TDI DSG Top End for Rs. 17 L (all OTR Delhi.)

I absolutely fell in love with the Skoda for obvious reasons but even the enthusiast in me was against spending so much. I thought to rather buy the Japanese and mod them according to my needs. My dad said, ‘Rapid nahi leni, shakal se toh 7 lac ki gaadi lagti hai!’ Translation : The Rapid looks like a Rs 7 lac car, so it’s not worth spending so much. (Not to offend anyone)

Skoda and VW maintenance horror stories are something even school kids are aware of. Coupled with exorbitant pricing, outdated platforms and zero marketing, I think they are light years away from their target.

Secondly, I believe that Hyundai with it’s Santro could nail it mostly because Shah Rukh Khan’s face got associated with it, despite being considered an ugly car by the Europeans (Hyundai Atos). Fiat Palio was an overpriced product but people didn’t buy it because it rode well or handled sportingly, they associated it with Sachin Tendulkar.
Meanwhile here are Skoda and VW brand ambassadors:


I hope their CEO’s are going through this thread.

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[adamkathy23]

I feel people are taking the 100,000 vehicle by 2025 figure too seriously. You need volume sales to achieve this, and it would not happen in 5 years. At least not for Skoda.

Its a way of assuring the Indian buyer that they want to be more successful than before with a new range of products, better support & overall reliability. It would be interesting to see how it unfolds in the future, but they certainly look to be on the right track with the RS 245 & Karoq launch.

[nuew]

That's Skoda shooting for the moon. I still remember the first gen Octavia which turned the heads more than any other car in its segment with its unique notchback styling and performance to boot. It looks great even in 2020. Meanwhile it is also not easy to forget the ASS and spare parts costs that drove the resale value down to the ground. It is really tough to change Indian customers’ mindsets once they have gained a bad reputation. Tata and Ford have been struggling to succeed in turning around the perceptions despite their continuous efforts. Skoda hasn't even tried in that regard. So the unrealistic target could merely translate to wishful thinking.

I still remember when my uncle almost got a preworshipped Laura. He turned down the deal once he enquired the costs to fix minor niggles the car had. As per him, it was cheaper to get one more car to salvage the parts rather than purchasing the parts from Skoda. My friend's ownership experience with his Rapid isn't inspiring either. Skoda should really work on the ownership experience to have a chance to achieve anything remotely close to that target.

On a positive note, Skoda and VW seem to be working on achieving ~95% localization for newer cars based on their newer architectures. If it translates to more sensible prices unlike that of the Karoq, cheaper parts and a more cheerful ownership experience, that will go a long way in making that target a reality someday (though 2025 is highly unlikely). Considering the prices of the German trio are going higher and higher, Skoda and VW has the potential to carve a niche as flagship killers bringing most of that luxury experience at a fraction of the price. Although the Octavia, Superb, Karoq, Kodiaq etc delivers on that front, the pricing could get even more VFM once they achieve a higher percentage of localization.

The 7.49L price on the Rider variant of the Rapid is alluring enough to get some footfalls into the showrooms. But to translate it into sales, Skoda has to fight it out with the segment favorite Marutis and Hyundais which rides on their reputation over anything else. Still, as an enthusiast, I thank Skoda for making the dying breed of driver’s cars more accessible. Now giddy up and make the ownership a pleasant experience too.

[vredesbyrd]

If they ever want to get even close to half of that grand figure, there are a few things they can do:

1) Produce parts locally for shorter lead times and for not ripping customers off (8000 bucks for window switches? Grow up!)
2) Hire competent mechanics and advisors who listen and deliver solutions to a problem instead of arguing and then not responding on time
3) Bring more petrol engine options

[Durango Dude]

For doing this Skoda India has to learn from Maruti/Hyundai/Kia brigade as to what to do when it comes to after sales and make amends and also increase reach by a manifold increase in dealerships in B and C towns, which given the Covid pandemic and totally damp consumer demand is much easier said than done. 2020 is a wash out unless God deposits cash in each and everyone's pocket. So what you've left another 4 years to do it, may be the top Skoda Management has been dreaming and come out with resolutions after that.

[aman-bh]

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[ABHI_1512]

I would have so liked to hear this ambition from Ford instead of Skoda only because of the JV with Mahindra. My own bias aside, Skoda has some interesting products lined up in the next 18 months and if they are able to put in the hard yards and price the products in the sweet spot then who knows, may be some of us will be real surprised. As GTO has mentioned above, we have seen how Renault got back into the game here in India (I expect the same for Ford as well only because of the product line up that they have because of the tie up with Mahindra). But even with very optimistic standards, one lakh units per year would be quite a feat to achieve for a brand which is known for high maintenance and lop sided service efforts !!

[Heart_Revs]

Pricing apart, car ownership is a long term process. So all the swanky showroom and Tie-donning salesmen will not do much good I overall long term ownership is a damp experience.
Skoda and VW need to go a long way to inspire the same level of confidence as a Maruti or HYundai.
There need to be more than one showroom in smaller cities. In metros they need to have showrooms in multiple.
There is need for tight reins on thier dealerships. Horror stories in entire VAG group dealerships are a plenty. Selling souped up cars as Black Edition, swapping new parts from one customer car to old parts, fighting legal battles with customer, Audi taken on joyride by dealership staff- there are a plenty of scary material around the VAG service centers.
Let me iterate again and again so that it rings bells at someone influential in Skoda Management - I wont mind paying a lakh or two more for your product if it is good; afterall it pinches my pocket only for a day or two. But I will certainly not tolerate the kind of service support you have on offer because bad service messes up my entire ownership.