Skoda Mulls to Hold Back Investment Plans in India
Published On Sep 26, 2014 07:07 PM By CarDekho
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Skoda India, the wholly owned subsidiary of Skoda Auto said that the company is holding back the future investment in India due to 'uncertainties' in the policies. The automaker is facing serious "tax issues and other disputes" which is the main reason why the manufacturer is holding back the investment in country.
Just a day back, Skoda introduced the Rapid facelift in the price range of Rs.7.22 lakh to Rs.10.97 lakh (ex-showroom Delhi). Furthermore, the company has hold back the small car project in concern with technology transfer agreement, Fiat case (payment of excise duty on the discounts) and recent penalty from CCI.
Skoda Auto India Chairman and Managing Director Sudhir Rao said, "We would like to invest more in the future provided these uncertainties start making us feel more comfortable. If these uncertainties become a thing of past and we are clear of the rules of the game as to speak then we can compete according to those rules in in the game.
The recently launched Skoda facelift embraces Bluetooth and Cruise control on Ambition Plus and Elegance trims while the Climatronic automatic air conditioning is only available on the top Elegance version. Mechanically, the car replaces the 1.6-litre diesel engine with 1.5-litre TDI powertrain which generates max power of 103bhp and peak torque 250Nm. The engine is coupled to 7-speed DSG transmission on the diesel variant, making it one of the most affordable diesel automatic sedans sold in the Indian market with fuel efficiency of 21.66kmpl.
Mr Rao also added, "I think if we were a lot more gung ho, optimistic, we would have made the decision to invest heavily in the Fabia replacement. So, what we have done instead to succeed in India is that we are working on other aspects like the Rapid facelift project."
On the further projects he said, "We have engaged Mahindra engineering services to help us with engineering aspects to create a design, which is simpler and works in India and also matches Skoda specifications."
