Volkswagen to Reposition Brands in India; Skoda Cars May Become Cheaper

According to recent reports, Skoda India may be lowering the price on its range of cars to reposition itself in the Indian automotive scene. Internationally Skoda has always been a budget brand subsidised by the Volkswagen Group. In India however, the case has been slightly reversed with Skoda actually positioned higher than Volkswagen due to better sales and popularity factors. While Volkswagen currently sells seven brands in India; Polo hatchback, Jetta, Vento, Passat and Phaeton sedans, Touareg SUV and the Beetle, Skoda India comparatively has only five brand models namely; Fabia hatchback, Rapid, Laura and Superb sedans and Yeti the compact SUV.

Despite this, Skoda India has made a better name for itself than Volkswagen. Speaking on this corrective measure, Volkswagen Group Board Member and Executive Vice President Ulrich Hackenberg said, "It's a question of how different brands are placed against themselves in the market. Skoda has a quite high position. In the group, Skoda is little bit positioned under Volkswagen. So, we are on the way to make a correction."

Since this popularity for Skoda India cars is leading to a drop in the Volkswagen range in terms of premium standings, this corrective measure will be undertaken and will lead to the possibility of the Skoda India range of cars becoming cheaper to make the positioning difference more distinct.

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