Following the break-up of the global alliance between Volkswagen and Suzuki, Volkswagen group company Skoda has decided to develop the small car Citigo on its own in India, dropping an earlier plan to develop it in an alliance with Maruti Suzuki. Skoda is expected to launch the Citigo next year with a price tag of R3.5-4.5 lakh.
Though Skoda had initially planned the Citigo only for Europe, rising Indian demand for compact hatchbacks forced a rethink, a company official told FE. The model will be positioned below Skoda?s premium hatchback Fabia, which has not been a volume driver for the carmaker.
Citigo will be positioned against Maruti Suzuki Wagon R, A-Star, Hyundai i10, Chevrolet Beat, Toyota Etios Liva and Honda Brio. It is expected to strengthen the company?s position in the compact hatchback segment and enhance the market reach of the Skoda brand.
In September 2011, Skoda sold 1,654 units, 12.75% more than in September 2010, when it sold 1,467 units. ?Despite tough market conditions, we have managed to maintain a healthy growth rate… We are committed to providing value offerings and will strive for further growth in the coming months,? Skoda Auto India board member (sales and marketing) Thomas Kuehl said.
Meanwhile, the company is bullish on Rapid, a compact sedan slated to be launched next week. Speaking about the company’s performance over the last 10 years, Kuehl said that though Volkswagen is a major brand, Skoda too has shown good performance in the Indian market. Both Skoda Laura and the recently launched Skoda Yeti in the SUV segment have been doing well, he said.