Skoda, which will stepwise establish actual manufacturing facilities, had planned production of 3,000 units in 1998, 7,000 in 1999, 12,500 in 2000, 35,000 in 2001, 55,000 in 2002, 57,500 in 2003 and ultimately 60,000 in 2004. All these will now be correspondingly halved.

The company had assured indigenisation of components up to a minimum level of 50 per cent in the fifth year or earlier from the date of clearance of first import consignment of CKD/SKD kits and 70 per cent in the seventh year or earlier. Once 70 per cent localisation level is reached, there will be no need for another import licence from the Director General of Foreign Trade (DGFT). The company had envisaged 10 per cent indigenisation in 1998, 20 per cent in 1999, 30 per cent in 2000,40 per cent in 2001, 55 per cent in 2002, 65 per cent in 2003 and 70 per cent in 2004. It had decided to aggressively pursue and achieve the development of the total supply base and increased local content since the same would have allowed a higher level of indigenisation.

Skoda had planned to import 3,000 kits worth Rs 65 crore in 1998, 7,000 kits for Rs 140 crore in 1999, 12,500 kits for Rs 219 crore in 2000, 35,000 kits at Rs 632 crore in 2001, 55,000 worth Rs 725 crore in 2002, 57,500 worth Rs 615 crore in 2003 and 60,000 kits worth Rs 547 crore in 2004. The company was of the view that it would achieve a broad neutralisation of foreign exchange over the entire period of the memorandum of understanding in terms of balancing between the actual FOB value of imports of CKD/SKD/components and the FOB value of exports of cars and auto components over the said period.

Skoda had planned to commence the exports from the fourth year of the start of production. The date of commencement of production would bedeemed to be the date of the first release of consignment from factory after payment of excise duty.

However, from the fourth year onwards (effective from date of release of first consignment), the MoU signing firm would do its best to export equivalent to the FOB value of imports made by them till that time for the remainder of the MoU period. The export efforts would be done by exports of cars, components and other items related to the car industry.

The company had carved out an ambitious plan for car exports to Sri Lanka, Nepal, Myanmar, Kenya, Afghanistan, Thailand, Malaysia, Indonesia, Pakistan and Bangladesh. The company wanted to export 5,000 cars valued at Rs 114 crore in 2001, 10,000 worth Rs 228 crore in 2002, 12,500 worth Rs 285 crore in 2003, 15,000 worth Rs 342 crore in 2004 and 15,000 worth Rs 342 crore in 2005.