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Skoda Cars In India To Become Pricier From Next Month

Skoda Cars In India To Become Pricier From Next Month

Snapshot: Skoda will hike price of all cars in India by 1% from March 2018 to deal with increased custom duties.

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Skoda is preparing to hike pricing of its cars in Indian market in order to deal with the increased custom duty on CKD models that was announced in the last union budget. While, the increased custom duty on CKD models means imported cars will be much pricier in India, the Czech auto manufacturer doesn’t want to make things harder for customers. Instead, it wants to increase pricing of its cars slowly in multiple steps.

As per the multi-step price hike strategy, the initial surge Skoda Cars Price in india will be 1% that will translate into an increase ranging between Rs. 10,000 and Rs. 35,000 across the brand’s entire model range available in the country. The company is expected to increase pricing at later stages by up to 4% that will lead the models being expensive by up to Rs. 1.50 lakh.

This increased pricing could affect the sales of the brand in near future. However, a multi-step price hike won’t make things harder for the buyers. The Volkswagen owned Czech car brand currently has a localization rate of around 55% in India. Skoda Cars India is trying to achieve more competitive pricing by increasing the localization in production for the India-spec cars. It aims to increase the localization up to 60% in coming years.

More localized production will help the brand in its long cherished strategy to become the affordable premium brand of the country. Currently, Skoda in Indiahas a market stake of 2% in India and the brand dreams to take it up to 5% in near future. Presently, Skoda imports the engines and transmissions here and assemble them into the cars at its Aurangabad plant in Maharashtra.

Skoda has seen pretty good response with its new crops of cars in India. Thanks to the increasing demands for premium global-standard cars from domestic buyers, Skoda has been experiencing sales hike here. The brand is currently working on its India-specific ECO platform that comes as a cheaper derivative of the Volkswagen’s well acclaimed MQB architecture.

 

Check Here More Skoda Cars in India

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