Mumbai, Jan 16: Skoda Auto -- which intends to roll out the first Octavia car in June from its assembling plant near Aurangabad in Maharashtra -- plans to introduce auto financing for Indian customers. Skofin, a 100 per cent subsidiary of Skoda Auto, is likely to be roped in for this purpose. Skoda Auto vice-chairman Detlef Wittig, who has signed a memorandum of understanding (MoU) with the state government for the Rs 750 crore state-of-the-art plant at Shendre (Aurangabad), said that the company board will take a decision in this regard soon. "We are seriously thinking of providing auto finances. However, modalities will be worked out shortly," he added.
Wittig said that the company may also think of introduction of a leasing facility to enable Indian customers to chose Octavia. "Though I am aware that such an instrument is not currently used in India, it can be possible after the introduction of a new automobile policy," he said. Wittig said that the Shendre project is fully financed by the Skoda Autoand hoped that the company would achieve a break even within three years from the commencement of production.
The company will roll out the 1.9 turbo diesel version from June while the two-litre petrol version will hit the Indian roads later. Octavia which will compete with Mitsubishi Lancer and Opel Astra will be priced at around Rs 9 lakh.
"Skoda Auto will not stop here but may go in for the launching of Felicia, Fabia and other models in India," Wittig said, adding that the Indian operations will be reviewed after every two to three years and the board will decide on the introduction of new models at an appropriate time.The company has sold off 3,90,000 vehicles of various range till date of which five per cent were in the Asia-Pacific region.
The Skoda Fabia which was recently launched in the European market will be available in 1.41/50 kW and 1.41/16 V/74 kW petrol engines and 1.91 SDI/47 kW diesel engine. All these vehicles are Euro-IV compliant, Wittig said.
Volkswagen vice-president forAsia-Pacific region Stefan Jacoby said that the Volkwagen will also bring in its various models including a small car in the Indian market. However, he declined to divulge further details in this regard.
Jacoby said that the company will start a management training school in association with the Marathwada university. Those students who would pass out from this school will be given admission in the German universities which has been running courses with Volkwagen.
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