Czech carmaker Skoda recently introduced the Rapid facelift in India at a price of Rs 8.35-12.78 lakh (ex-showroom, Maharashtra). The Rapid has been the prime sales driver of Skoda India and with the facelift, the company expects a growth of up to 40 percent in sales of the sedan.
The Rapid is already the mainstay of Skoda’s fleet accounting for 11,753 units of the carmaker’s total sales of 15,368 units in the year ending March 2016. Now with the facelift, Skoda aims to increase sales to around 20,000 units by the end of 2017.
“The Rapid accounts for almost 70 percent of our total volumes. We expect a 30-40 percent jump in volumes of the Rapid over this year with the introduction of the new Rapid. That is what we are counting on to reach 20,000 units next year,” Ashutosh Dixit, director (Sales, Service & Marketing), Skoda Auto India told Autocar India.
The substantial growth in volumes, however, could be a challenge for the Czech carmaker due to the lack of a competitive petrol engine, especially at a time when there is a growing anti-diesel sentiment among buyers. The Rapid facelift has been launched with the carmaker’s ageing 1.6-litre petrol engine, which has been carried over unchanged from the earlier car. However, plans to bring the newer 1.2-litre turbo-charged TSI petrol, which powers the sister brand VW’s Vento, have been put on hold. This is because potential warranty costs could rise and work against the feasibility of the vehicle, according to internal sources.
Moreover, the scope for future growth could also be restricted by the shrinking dealer network. The company currently has a network of only 65 sales and service outlets across the country, down from 80 sales and 79 service outlets in end 2014. It needs to ramp up its presence to reach a wider customer base.
Earlier this year, Skoda had laid out plans for future products for India. While the manufacturer’s focus will be on the Rapid for the moment, the new Superb and Kodiaq SUV will help Skoda address the more premium segments. Interestingly enough, Skoda India is also studying the possibility of products below the Rapid. Skoda had undertaken development of the Rapid facelift in India and is confident more projects could see local R&D being put to use.
“We are confidently moving forward to evaluating other projects that are below the Rapid in terms of being able to adopt the same development philosophy (as the Rapid facelift). We are in active stages of evaluating such projects. We are confident that we will be propagating the philosophy of development to other products as well and I think in the medium term, not in the short term, you will see us expanding our product portfolio even below the Rapid with a much more effective strategy which is much more sustainable,” Sudhir Rao, chairman and managing director, Skoda Auto India told Autocar India.
Of late, Skoda India has been on a mission to revamp its image. Sales outlets have been spruced up and special attention has been given to the after sales and ownership experience with the introduction of class-leading warranty programs and the promise of a transparent service experience. With new products in the offing and restored confidence in the brand thanks to its service initiatives, Skoda could be back on track to regain former glory in India.
Rivan RS 
Viraaj Bhatnagar
Uday Singh
Suraj Viswanathan
