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Skoda Auto VW India eyes management within the mid-size sedan phase with Slavia

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Amid SUV frenzy within the nation, Skoda Auto Volkswagen, the Indian subsidiary of the world’s largest automotive maker – the Volkswagen Group is introducing a mid-size sedan Skoda Slavia together with VW sibling to additional its India ambition of capturing 5% market share by 2025.

With the introduction of Slavia, the Czech automotive maker has set a goal to grab management in mid-size sedan phase from Honda Metropolis and likewise eye primary place within the total sedan market above Rs 10 lakh within the nation.

Slavia is the third automotive underneath the group’s MQB A0 platform which has been launched within the nation as a part of its Rs 8,000-crore India 2.0 plan.

With the launch of the 2 sedans (Slavia and VW model of MQB A0 sedan), the corporate expects to get again to manufacturing at full capability at its plant at Chakan close to Pune through the subsequent fiscal yr, stated Gurpratap Boparai, MD of Skoda Auto Volkswagen India.

Boparai says the premium mid-size sedan presents great potential for progress sooner or later and it’s a “territory” which the corporate has “made its personal” on account of robust market share within the Octavia and Very good phase.

“We’re assured that the ŠKODA Slavia will proceed the benchmarks set by the Octavia and Very good and can assist us to additional strengthen our dominance within the phase,” he added .

Skoda Auto believes whereas the share of sedan within the total market might fall – however the absolute quantity of sedan within the total market continues to be anticipated to develop by greater than double within the coming decade to over 2.5 lakh items each year by 2031. And the phase is anticipated to develop quicker than the opposite segments on account of its low base presently.

Slavia is the widest automotive within the phase and presents boot area of over 500 litres which is greater than a mid-size SUV. The automobile is prone to be launched by March of 2022 and the corporate intends to promote about 3000 to 4000 items a month, based on individuals within the know.

To maintain the thrill within the Indian market, the corporate has chalked out plans to introduce a smaller SUV sooner or later, which is able to guarantee sustained progress in volumes within the coming two to a few years and assist Skoda attain the imaginative and prescient of being the biggest European model in India.

Skoda is eyeing gross sales of about 30,000 items of Slavia a yr, in a market, the place about 72,000 automobiles have been offered led by Honda Metropolis and Maruti Suzuki Ciaz.

The sedan phase has been in a slumber over the previous few years with automakers focussing on SUVs. Simply in FY19, the mid-size sedan phase had recorded gross sales of about 156,000 items. However an absence of recent launches and shopper choice for SUVs meant that gross sales greater than halved in simply two years whilst SUV gross sales continued to develop.

“The business has compelled individuals to have a look at SUVs. With Slavia, we’ll convey extra impetus again to sedans. We wish to be phase chief in sedans above Rs 10 lakh,” Zac Hollis, Model Director, Skoda Auto India informed ET.

The brand new fashions substitute the Skoda Speedy and Volkswagen Vento in India. The outgoing fashions offered about 8,300 and a couple of,300 items, respectively, in FY21.

The semiconductor disaster was the most important provide chain problem and the scarcity has affected the corporate’s potential to fulfill market demand, identical to the remainder of the business, Boparai stated. He expects the scarcity to ease barely by the primary quarter of subsequent yr, however normalcy was nonetheless a while away, he stated.


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