Recently, Volkswagen announced a price hike for its passenger cars in India. The German carmaker revealed that it plans to increase prices across the model range by up to 2 per cent. Now, Skoda Auro India has followed suit. The company has declared that the price of the entire range of Skoda Auto India vehicles will be hiked by approximately 2%. The new change will take effect from January 1, 2024. This might be a great time to quickly get a Skoda car.
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The reason behind the new price hike is likely due to the rising material costs. Skoda claims that the new price adjustment is needed to sustain the high quality and safety standards associated with Skoda vehicles. The company has been dealing with several challenges including rising costs (supply, input, and operational) and an increase in competition. According to the company’s announcement, the new price adjustment will apply to all the popular models including the Skoda Slavia sedan, the Skoda Kushaq SUV, and the Skoda Kodiaq luxury 4×4.
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Skoda Auto India Portfolio
Skoda Auto India | Price (ex-showroom) |
Kushaq | Rs 10.89-20 Lakh |
Slavia | Rs 10.89 – 19.12 Lakh |
Kodiaq | Rs 38.50 – 39.99 Lakh |
The Skoda Kushaq SUV was launched in India in 2021. It is based on the all-new MQB-A0-IN platform. In 2022, the company launched the Slavia sedan, which shares the same platform. Both cars have become quite popular among the customers. The impressive highlight being a full 5-star safety rating under Global NCAP’s crash tests (for both adult and child occupants). Additionally, the Skoda Kodiaq Luxury 4×4 comes with a Euro NCAP 5-star safety rating for adults and children. This means that Skoda Auto India maintains a 100% fleet of 5-star safety-rated cars.
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Growth Plans
The German brand has adopted a customer-centric approach to make quality service accessible. It has significantly expanded its network (from 120 customer touchpoints in 2021 to over 250 by the end of 2023). Skoda Auto India claims that its global expansion plan is based on its commitment to excellence. For example, the Skoda Kushaq and Slavia were initially specifically developed for the Indian market. Now, both cars are being exported to GCC and other right-hand drive markets. The company plans to enter the Vietnamese market in 2024.
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Author’s Note
Escalating input costs are having a huge effect on the ex-showroom prices. With the new price hike, Skoda Auto India has joined major players in the Indian auto sector. Apart from Volkswagen, brands like Maruti Suzuki, Tata Motors, Mahindra & Mahindra, Hyundai Motor India, Honda, Audi, BMW, etc. have announced price hike plans for their vehicles. Since Skoda is known for offering quality vehicles, it makes sense to push the price up. While the anticipated price hike is a strategic move, it is commendable that the brand is dedicated to maintaining high standards despite economic challenges.