Saturday, November 03, 2012
By Manoj Kumawat
Skoda India says no to discounts on their cars, adopts unique strateg
In an unprecedented move, the Indian unit of the Czech Republic based leading car maker Skoda Auto has reduced the offered discounts on their India portfolio, while cutting all discounts on premium hatchback Skoda Fabia. The decision has been taken on a time when the biggest festival season of the year is around the corner and all major car makers are offering lucrative discounts and freebies on their cars. According to sources, the discounts have been reduced to cut the company’s dependency on such market practices.
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Speaking on the company’s decision, Mr. Sudhir Rao, chief operating officer of Skoda India, said to Economic Times that the company is looking forward to adopt a different strategy to sell their cars in India and will not increase discount on their cars. Despite being comparatively expensive in their respective segments, the company is expecting their cars to do well with the help of their superior brand and contemporary European technology. The company has said that despite reducing the prices of their cars, they have managed to consistently increase their sales.
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While the discounts on cars like midsize sedan Skoda Rapid, premium Sports Utility Vehicle Skoda Yeti, and premium sedans Laura and Skoda Superb have been reduced significantly, the discount on Fabia hatchbacks has been removed completely. The Hot selling Honda City is attracting car buyers with goodies of up to Rs 50,000. In comparison, the Skoda Rapid is available with a discount of just Rs 9,999.
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At the same time, the other car makers like Maruti, Hyundai and Tata Motors are offering huge discounts on their cars to woo the customers during this festive season. Maruti Suzuki is offering a discount of up to Rs 35,000 on their cars like Maruti Alto. On the other hand, the country’s leading vehicle maker Tata Motors is offering benefits of up to Rs 75,000 on their premium sedan Manza.