Skoda - Skoda - VW's problem child

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Thu 17 Jan 2008 10:32
Skoda - VW's problem child - ajit

VW have painted themselves into a real spot in India. After humming and hawing and sitting on the fence for 10 years, they have decided to enter the Indian market however, they have a problem...Skoda!

Summarising, Skoda came in over five years ago with the Octavia 19 TDi . It's robustness and fuel economy made it a winner. They experimented with 1.8 turbo's and petrols as well as the L&K but the way ot an Indian motorists wallet is through fuel economy - they would buy a diesel Rolls if given the opportunity!

The Octy 1 is still made here and sells for about 16000 pounds (the duty on the kits costs us!) for the Rider. The Octy 2 sells from 19000 to 25000 (ambiente to LK respectivly). This is for the TDi100 engine. The superb TDI V6 (27000 pounds) bombed as folks would rather pay for more for a Merc or BMW and the Accord is better value at 23000 pouns

Result - Skoda is regarded as a prestige badge - something like what Volvo and Audi were consideried in the early 80's.

Now VW want to come in. They launched the Passat 140tdi (assembled here ) for 33000 pounds. Now they want to bring the Jetta in. If they want to pull hierarchy rank, the Jetta will cost more than the Octavia 2 and be as pricey as an Accord.

They are also touting the Polo however, Skoda have pipped them and launched the new Fabia - fully loaded but puny engines 1.4 ppetrol and diesel from 9000-11000 pounds -expensive compared to the Swift but the build and "brand" might justify the premium.

VW in India = Beetles so how would VW move up in the branding stakes ?
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Thu 17 Jan 2008 10:44
Skoda - VW's problem child - ForumNeedsModerating
How can they charge so much? All the models you mention must be 30-50% cheaper in the UK. Does India have high purchase tax/VAT/import tax or something? I wouldn't be surprised if a cheap-car-broker culture develops there soon!

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Thu 17 Jan 2008 11:17
Skoda - VW's problem child - 659FBE
It's interesting to see that VAG have made the same silly marketing error with the Superb in India as they did here. If you are going to offer a big car on a low rent badge you have to address the sector of the marketplace which can use it. Taxi drivers over here obviously fit the market (just about the only Superbs other than mine are all taxis here in Surrey) but if VAG had not been so greedy, they could have had most of the old Volvo estate car market as well.

Users of the old Volvo estates form the same pattern as taxi drivers - the vehicle is bought for its utility, safety and longevity, the badge doesn't matter. Corporate VAG greed would not allow Skoda to build an estate (they could have made a beauty on its long wheelbase chassis) figuring that estate users would just fork out the money for a VW badge.

So, a missed opportunity - a usefully big galvanised estate with efficient diesels on offer (something Volvo never managed) at a sensible price - pity.

As it is, the number of Superbs around just about matches the number of Volvo saloons of that era - for all the same reasons. I wonder what they will do with the new one?

659.
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Thu 17 Jan 2008 11:52
Skoda - VW's problem child - Alby Back
That's interesting about the "missing" Superb estate. As someone who absolutely needs a large estate car at a sensible cost, I had wondered why Skoda didn't do a Superb estate. I could certainly be persuaded if they were to do one.
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Thu 17 Jan 2008 12:24
Skoda - VW's problem child - v0n
As someone who absolutely needs a large estate
car at a sensible cost I had wondered why Skoda didn't do a Superb estate.
I could certainly be persuaded if they were to do one.


Often wondered that myself. Similarly - why does volkswagen group as a whole insist on not having proper large hatchback in mondeo class. Massive oversight.
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Thu 17 Jan 2008 13:06
Skoda - VW's problem child - PW
Probably same reason new Cit C5 is a saloon. Apparently continental Europe prefer them and see them as more upmarket than hatchbacks.

Having noted small hatch based saloons sell better on the continent (such as Astra/Megane and Cordoba) does seem to ring true IMHO.
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Thu 17 Jan 2008 13:45
Skoda - VW's problem child - drivewell
>> As someone who absolutely needs a large estate
>> car at a sensible cost I had wondered why Skoda didn't do a Superb
estate.
>> I could certainly be persuaded if they were to do one.

Can you wait 18 months? - It's coming, and I reckon it could be a cracker:

www.autocar.co.uk/News/NewsArticle/AllCars/228962/

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Thu 17 Jan 2008 13:51
Skoda - VW's problem child - Hamsafar
Are these VWs imported, or made in the Punjab factory? (Did the Punjab factory ever start making them?)
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Thu 17 Jan 2008 14:32
Skoda - VW's problem child - ajit
Are these VWs imported or made in the Punjab factory? (Did the Punjab factory ever
start making them?)


VW are building a factory in Pune, the Passat is assembled by Skoda as also the A^ and soon the A4

The car is expensive since a lot of the parts are imported in and economies of scale not acheived unlike small cars. Very little has been locally sourced. Honda's are a lot cheaper since the parts come in from Thailand which enjoys a lower tariff under some agreement.

Cars which have higher local contect are reasonably cheaper - Suzuki, Hyundai, Toyota's, local Fords are well priced
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Thu 17 Jan 2008 16:17
Skoda - VW's problem child - Compo
I am currently working in India, and you may be interested in these comments:
Estates are just not popular in India, you see the occasional one (an Octavia most recently) but I suspect it is a personal import. Indians like ordinary saloons, followed by hatchbacks, and then 4WD. Much to my surprise most Indians travel with comparatively little luggage - so no need for an estate.
The Octavia is widely owned (amongst the rich) and is regarded as an upmarket car (I must check Ajit's prices - they seem too high to me). It is a status concious country now (especially around Delhi) and the big Superb probably is trying to sell into this market. VW and Audi must be targetting this group as well - there is a big Audi showroom opening soon a few hundred metres from where I work. Volvo and BMW are also trying to get a foothold, although prangs are so common, it would rapidly reduce a British car enthusiast to tears. However, repairs are very cheap - sometimes done at the roadside.
There is a growing middle class - and there are many smaller hatchbacks around for them. The little Suzuki is very popular at the moment and the Fabia is probably targetted at that segment of the market.
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Thu 17 Jan 2008 13:58
Skoda - VW's problem child - Alby Back
Cheers Drivewell - Well, unless I win the lottery and retire to some sun drenched island paradise surrounded by fawning hand maidens in the next couple of years................. I could well be in the market for a Superb estate when the time comes ! :-(
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