The Volkswagen Group will increase its investment in India by Rs. 8000 crores in a bid to capture 5 percent of the market by 2025.
This was revealed by Chairman of Skoda’s global board, Thomas Schaefer, who also stated that Skoda and Volkswagen will lead the charge in achieving the target, while group brands Audi, Porsche and Lamborghini will also chip in.
Having failed to achieve its previous ambitious target of grabbing 20 percent of the Indian market by 2018, the Volkswagen Group has set a realistic target for itself this time around.
Skoda will launch 4 new models, starting with the Kushaq, in India this year under the India 2.0 campaign, while Volkswagen will also introduce at least 2 cars, which includes the Taigun, during the same period.
Schaefer said the Indian market remains challenging, but to combat that, he claimed, Skoda will get in cars that are competitive. Many such cars will have high localisation levels, the reason why Volkswagen Group India investment will see a huge increase.
The Czech carmaker sees Hyundai as a key competitor in India and is looking to enter the affordable and compact vehicle segments that is ruled by Maruti Suzuki, while Hyundai is firmly seated in second place.
However, Skoda has not decided whether its more compact model will be a hatchback or a crossover or an SUV. Whatever it might be, the product will sit below the Kushaq, which will rival the Hyundai Creta.
Further, Thomas Schaefer is of the opinion that the government should do away with tax benefits for cars measuring under 4 metres, for, he believes, there are other ways to support development.
In addition, the Skoda Chairman wanted the government to make it easier for automakers to import parts even as he claimed localisation is important.
Source – ETAuto.com