Skoda Planning Major Product Offensive in Association with Tata


Tata Motors’ highly flexible Advanced Modular Platform (AMP) will be greater role in the brand’s partnership with Volkswagen AG

Skoda is looking for a major product offensive in the Indian market in association with Tata Motors, under the homegrown auto major’s partnership agreement with the Czech automaker’s parent group Volkswagen AG. Skoda has been present in the domestic market for quite some time, but it couldn’t grab a good share here. Now, in association with Tata, it plans to roll out multiple models in the country and focus on volume production.

The Czech brand is targeting the highly in demand compact car segment. It is expected to launch its products in the small car, mini SUV and entry level sedan segments. All the models are likely to arrive in the market sometime during 2019 and Tata’s Advanced Modular Platform would play very crucial role in this strategy.

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In March this year, German auto giant Volkswagen signed MoU with Tata to explore the opportunity of joint product development. Skoda has been earmarked for the project on behalf of VW. Tata’s AMP architecture is highly flexible and capable of underpinning various products in different segments.

Skoda is also aiming to re-structure its network in the country to deliver effective service to the customers. Poor service quality has been a problem for the brand and now, Skoda aims to trim its dealership network to around 65 from current number of more than 100 showrooms across India. The Czech brand believes that this way, it would be able to boost the customer confidence by catering more efficiently.

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In 2016, Skoda sold 13,370 units in the domestic market compared to 15,457 units in 2015. Now, with focus on increased production volume it is hopeful to boost the sales. On the other hand, Tata Motors is expected to be benefitted from Volkswagen’s MQB platform that underpins several models across the VW and its subsidiary brand’s models. Apart from that, both the companies could share technology and component as well.

Upcoming Skoda cars in India

Source: ET Auto