Skoda Auto India to phase out Fabia hatch

Skoda India has decided to remove its flagship hatchback Fabia from its lineup for the Indian auto market. The premium hatchback couldn't manage to bag decent sales volume, expected by the company at is launch, moreover, the car's annual sales hit a five year low of 3,343 units in FY13. As per a report published on ET, 2,200 more Fabia hatchback will be produced before the manufacturer finally stops the production of the car by August 31.  

Skoda Fabia made its debut in 2008, and sold about 45,000 units so far in its six year long stay in India, while its monthly sales came down to only 115 units in April 2013. The spokesperson of Skoda Auto India said, "Skoda is in the process of strengthening its model range and as a part of this process; Skoda is contemplating a pause in production of Fabia in India. Skoda's immediate focus is on strengthening its presence in the sedan segment with the upcoming launches in 2013/14".

Skoda Auto India is all set to launch the new Octavia model during the festive season (Dushera-Diwali), indicating that the company focuses more on sedans to once again strengthen their sales in the Indian market. The car manufacturer recorded a sales decline of 14.73 per cent in FY-13, having sold 29,967 units, where Fabia contributed only 3,343 units in the year.

Experts believe that the Fabia hatch faced low sales due to its high pricing, while its competitors like Swift and i20 are available at low cost, forcing budget conscious buyers to prefer other hatchbacks instead of Fabia. The car has been available in the market for almost 5-6 years, and still the localisation level is around 40-50 per cent only, ultimately making it an expensive product for the buyers.

According to Pradeep Saxena, ED at market research firm TNS Automotive, "Fabia did not feature in the choice set of small car buyer, because Skoda as a brand stands for big sedans in India. In addition, the product was priced at a market premium."

For instance, their are no plans of launching a highly localised Fabia for the Indian car buyers, however, the company might come up with an all new hatchback by 2015. In past few months, we witnessed many of the car manufacturers discontinued their vehicles like Chevrolet removed U-VA, Aveo and Optra, Honda Cars India discontinued Sedan Civic and premium hatchback Jazz temporarily. Maruti Suzuki also plans to phase out its A-Star and Zen Astilo.

Source : ET

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