Volkswagen launches first car in India

By Our Special Correspondent

NEW DELHI, NOV. 16. Skoda Auto, a Volkswagen Group company, today unveiled its Octavia car here today. The well-built luxury car, Skoda Octavia, is being manufactured in the Czech Republic and is being imported to India as semi-knocked down kits. It is being assembled at Skoda Auto India's Aurangabad plant.

Aggressively priced, Skoda Auto is introducing the 1.9 litre turbo diesel Octavia followed by the 2-litre petrol version. The Octavia will be available in New Delhi, Mumbai and Goa to begin with, with plans to expand the network to 12 by December next.

The car will be available in metallic blue, red, metallic green, metallic silver, white and metallic grey colours with a two-year paint and corrosion guarantee.

Skoda Auto India is expected to play an important role in Skoda Auto's strategic plans for South and East Asian markets. The Aurangabad facility may export cars to neighbouring markets such as Nepal, Sri Lanka and Thailand.

PTI adds:

Skoda Auto's Octavia is priced at Rs. 10.60 lakhs and the company is targeting to sell about 6,000 units in the first 12 months.

``The company aims to sell 6,000 units during the first 12 months, and targets 20-22 per cent market share in the luxury top-end `D' segment. Going by the trends, the diesel version will account for 70 per cent sales and petrol 30 per cent," Skoda Auto India managing director Mr. Imran Hassen told reporters here.

``At present, we are paying 121 per cent duty, and we have already invested Rs. 5.60 crores as adjustment cost in India," Mr. Hassen said. Skoda had four dealers in India, Mr. Hassen said, adding the number of dealers would reach 12 by the end of 2002.

The sole plant of the company has a capacity to manufacture 8-9 cars a day with an employee strength of 38, including eight foreign technicians. Octavia was one of the safest cars in its class, and already meets future EU safety standards, he said.

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Section  : Business
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