Recently, the head of Skoda said that it plans to produce small SUVs in India in 2020. In 2017, Skoda's sales in India increased by 30% year-on-year, among which Skoda compact family car Rapid and SUV Kodiaq contributed the most. Skoda CEO Benhard · Meyer foreign media reporter said that the 2017 market sales data reflects the Indian consumers' love for Skoda models. Combined with the 'India 2.0' plan released by Skoda not long ago, it can be noted that Volkswagen is adjusting its development in India. strategy.
Skoda's 'India 2.0' program
In early July of this year, the Skoda brand under the Volkswagen Group announced its development plans in the Indian market, including 90% of local production; the production of 1.0-liter TSI engine; plans to put Volkswagen and Skoda brands in the Indian market by 2025. The share has more than doubled to 5%. Currently, the Skoda and Volkswagen brands have a market share of 1.9% in India.
The biggest concern of the 'India 2.0' program is to reduce costs by strengthening localization. 'India is a highly competitive, price-sensitive market. Real localization is a necessary condition for sustainable development.' Meyer said, ' Skoda will take over the Volkswagen brand Chakan plant and include a new production line based on the new MQB platform.
'Through the 'India 2.0' program, we will invest a lot of money to improve the Group's production capacity. This will enable us not only to meet India's growing demand, but also to meet export needs. ' According to Gurpratap Boparai, head of Skoda Auto India.
Volkswagen Group's development in the Indian market is not smooth, and the cooperation plan with Tata Motors last year has not produced any results. Skoda CEO Bernhard Meyer admitted that the company failed to achieve growth as expected. 'Volkswagen Group has been suffering Struggling, but failed to achieve its growth goals in India, we can accept this. However, the Volkswagen Group must develop other plans in India, which is why we launched the 'India 2.0' program.
Meyer said that in order to succeed in India, Skoda also plans to adopt a three-pronged approach, including improving customer service levels, reducing costs and improving efficiency.
Some analysts believe that although the quality of Skoda brand cars is not bad, there are many problems with the company's after-sales service. 'We have taken a series of measures to improve after-sales service. One of our 'India 2.0' plan goals is to improve customers. Satisfaction. 'Meyer said: 'First-class customer satisfaction is our top priority. We will focus on customer service.'
The Volkswagen Group plans to invest 1 billion euros in the first phase, from 2019 to 2021, for the implementation of the above plan, and may make additional investments in the later period. Volkswagen plans to create 4,000 to 5,000 jobs in India before 2025.
Why does the public look at India?
The public took a long-term view of the Indian market and took action, but they all ended in failure. Initially, the public hoped to take shortcuts and lay down the Indian market by leveraging the power of Suzuki. India's largest automaker, Maruti Suzuki, was founded in 1981. It is a 56.21% owned subsidiary of Suzuki, which is regarded as a local company in India and accounts for half of the Indian passenger car market. Suzuki specializes in the development and market operation of small cars, which are valued by the public. Volkswagen and Suzuki In December 2009, a cross-shareholding agreement was reached, and cooperation was planned from the capital and technical level. For the complicated reasons, the two parties not only failed to reach a cooperation, but also fell into a lawsuit dispute. In 2011, they dealt with the court, and the two sides finally broke up. The public did not have any market in India. Progress. Last year, Skoda and Tata started a cooperation negotiation. Since the cost reduction plan could not be reached, the cooperation could not be carried out.
After a painful setback, the Volkswagen Group, which wasted a lot of time, changed its mind. The partners are slowly looking for it, but they cannot continue to wait.
The Indian car market has an annual sales volume of 3 million vehicles and is expected to become the world's third largest market by 2020. Although sales and sales in the Indian market were not dominant compared to other regional markets, they were strategic markets and positioning. The mass market of consumers, the Indian market is impossible to ignore.
As the CEO of Skoda said, the public can accept the results of the present, but there must be other plans. Therefore, investing heavily in strengthening localization has become the best choice for the mass group. Recently, the public has also marked a series of actions in India. Volkswagen is making strategic adjustments in this important emerging market in India.
India's SUV market has become a battleground
It is understood that SUV is currently leading the Indian passenger car market. In the last fiscal year, Indian car sales increased by 3%, compared with 21% increase in off-road vehicles (according to the Indian market models, including SUVs and motorcycles) The car market is particularly eye-catching. According to the Indian Automobile Industry Association (SIAM), Indian SUV sales reached 920,000 in the 2017~2018 fiscal year, significantly higher than the previous year's 760,000.
Analysts believe that the Indian SUV market will continue to maintain a high growth rate in the context of new models and changes in Indian consumers' lifestyles. Currently, SUVs account for 30% of the Indian passenger car market, and in fiscal 2010, This ratio is 14%
Multinational auto companies have entered the Indian SUV market.
Kia Motors recently showed the concept car SP in India, which is close to the size of Hyundai Creta, and is likely to be based on the same platform as Hytra.
The JEEP brand of the Fiat Chrysler Group also announced an ambitious product plan in the Indian market. The head of the brand revealed in the beginning of June this year that it plans to launch a compact SUV in India, which is slightly lower than the Jeep Liberty. JEEP's entry-level product lineup in the Indian car market.
It is reported that the new entry-level JEEP SUV will share the platform with the next generation Fiat Panda and 500. The body and interior of the car will be completed by JEEP.
JEEP plans to release four electric and 10 plug-in hybrids in the global market in 2020, and will also launch a Wrangler pickup and Grand Wagner. In the Indian market, in addition to the compact SUV, JEEP plans to launch a new one. Three-row seated medium size SUV.
FCA hopes to develop India into a regional manufacturing center and export base. Fiat Chrysler Automobile Corporation (FCA)'s new CEO, Mai Minghao, confirmed in an interview that the company will increase production in India and plan to increase production capacity. Some 160,000 units have been raised to 240,000 units. JEEP also plans to increase sales in the Indian market by expanding its dealer network and providing better after-sales services to customers in the Indian market.