Skoda may make India a production base

The Hindu Business Line Bureau

Chennai, Oct 14 2003

SKODA, the Czech-based subsidiary of the German car major, Volkswagen, has taken its first steps towards making India a production base, company sources said.

Skoda Auto India assembles `Octavia' cars from premises rented from Siemens in Maharashtra. The company is building a new assembly line in Aurangabad, and has committed to making an investment of $56 million over a seven-year period till 2007.

However, over a period of time, Skoda could make India a production base for exports to third countries. When that happens, the company may also source auto components from India, for its other plants worldwide, sources said today.

Officials from Skoda India were here to acquaint the press with its next offering, the E segment luxury sedan, `Superb'.

Addressing a press conference here, Mr Bipin Datar, General Manager, Sales and Marketing, Skoda Auto India, said that the company would also come out with a diesel version of `Superb', which will be priced the same as the petrol model.

"There is no reason why a diesel model should be priced higher than a petrol model. I have been asking the competition for an explanation, but I have never got one," Mr Datar said.

Meanwhile, the indigenisation programme for Octavia is picking up pace. In a month, Skoda India will have finalised the vendors for items such as horns, headlamps and batteries. The company expects to reach a 70 per cent indigenisation by 2004.

Source: The Hindu Business Line Internet Edition - Wednesday October 15, 2003

Lets hope the quality is high there.

It's a shame so many companies are moving jobs to India :(.

I generally boycott companies who are moving jobs to places like India.

Yep, nothing against India but I am of the same opinion.

If its a new plant rather than a re-location then i don't have a problem with it.

However, if they start to ship work away from the other plants then i would object too.

Bearing in mind Skoda's plants are mostly in "eastern" europe, it would be ironic to say the lest if they were to start exporting jobs to India a la BT & various UK Banks...

It is a new plant, which is building Octavias for the Indian and sub continent markets only.