There’s been a lot of talk about the Rare Earth crisis and how it will affect the Indian automobile sector. Some companies have already pressed the panic button and stated that the shortage is going to get real by the end of June or early July. While it is anyone’s guess on China’s restrictions on the export of the Rare Earth elements, the rest of the world, including India, is scrambling for solutions. We recently caught up with the new Skoda Brand Director, Ashish Gupta, and asked for his review on this topic. The answer will surprise many and will make its competition green with envy.Â
Skoda’s take on Rare Earth Elements
Currently, the auto sector in India is figuring out how to tackle the curbs on Rare Earth Materials by China. When asked about this, Gupta was confident and said, “I think we have had discussions internally and especially with the supply chain team, and they have internally told me that our domestic business is not affected.”Â
This makes sense as currently Skoda is not selling any electric vehicles in India, and the Rare Earth Elements are vital. These materials are used to make magnets which are utilised with the motor, axle and much more. It’s safe to say that without these materials, it would be pretty much impossible to roll out an electric vehicle.
Many will argue that these Elements are also used for internal combustion engine vehicles, but with Skoda’s sales being fairly restricted, it can tackle these challenges internally. Based on May sales figures, its best-selling vehicle, the Kylaq, sold just under 5,000 units, while the rest, like Kushaq, Slavia, Kodiaq and Superb, are below the 1,000 units market.
Kylaq propels Skoda from 11th to 7th
Entering the largest and most competitive segment, the sub-4-metre segment, can be a double-edged sword; it is showing some dividends for Skoda. While taking on SUVs like the Maruti Suzuki Brezza, Tata Nexon, Kia Sonet, Hyundai Venue, Mahindra 3XO and many more, the Kylaq has managed to carve a niche of its own.Â
Gupta explains what gives the Kylaq an edge over its competition. “I think one is a fact, yeah, so the fact is that, you know, our service costs are now one of the most affordable in the market. The fact is that we have a one-year supercare package, which makes your service free.”
Gupta added, “The fact is that we have warranties ranging from 3 to 5 years across our product range. We also offer one of the best roadside assistance packages on the market. Even Skoda’s spare parts availability has improved quite a lot.”
