Latest Car News in India

Wednesday, August 01, 2012

By Manoj Kumawat

Skoda to increase localization content in cars

Sensing the success of Skoda Rapid, the Czech automaker Skoda is all set to increase the localization level of its cars in India. This will not only bring down Skoda car prices but will also help streamline deliveries. For this, the car maker will be sourcing a lot of components from India and it is believed that one it comes into action, a price slash will be there. Currently, the cars that could have step up in localization include Skoda Fabia, Skoda Rapid, Skoda Laura and Skoda Yeti. Meanwhile, this will also help the car maker build localization infrastructure for the upcoming Skoda Citigo small car.

Skoda Rapid Pictures

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As per the sources information, the move will be benefitting the car buyers greatly and a near about price slash of Rs 30,000 to Rs 50,000 to Rs 1 lakh is expected on different models. The increase in localization will have several benefits besides the price reduction. These include easy supply of spare parts and these parts will not be costly as these are supposed to be currently. Besides, the increase in localization will streamline the delivery and it will be like hand to hand delivery of Skoda Cars in India. Though Skoda cars are available on ready delivery but there is a waiting on some models.

Skoda Citigo Pictures

See More Skoda Citigo Photos Get Skoda Citigo Price

Another good thing that the experts believe will happen to Skoda, after it increases localization, is that it will then be able to compete well with its rivals including Maruti, Tata, Ford India and Chevrolet. This will further boost sales and the car maker will have an enhanced presence in every segment in India. Currently, the Skoda Fabia, Skoda Laura and Skoda Yeti besides the Rapid sedan are the ones that sell well. The localization boost will also create more jobs in India. Currently, Skoda builds Fabia and Rapid in India at Pune and assembles Yeti, Laura and Superb at Aurangabad.

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