Tuesday, April 7, 2009

Nano's Effect On Skoda

Just hours after the Nano's launch, Skoda announced its plan to launch its small car a year earlier in 2011. The car which will be the first from the Skoda staple to cost below Rs.4 lakhs is Skoda's first one manufactured completely in India. So far the company has been importing parts from Europe for all its cars. Now it is planning to setup a localized vendor near Aurangabad. Skoda claims that by sourcing suppliers locally, without compromising on quality, the company will be able to deliver more VFM products.

Also in the pipeline is yet another small car product from Volkswagen. This car is expected to be priced below the Golf at about Rs.6 lakhs. Skoda accepts that the Nano has pushed all auto majors to innovate processes and materials to give quality products at a lower price. According to Skoda, the Nano project has given the world a glimpse of Indian engineering capabilities. Apart from the Yeti, a Laura upgrade and the aforementioned small cars, a sedan targeting the C segment is also under progress. By 2012 Skoda aims to have a fully developed portfolio for India.

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