Skoda will focus more on selling on second hand vehicles this year in order to up sale volumes. According to reports the Czech auto company wish to distance themselves from the luxury tag which they posses and want to become more of a mass seller. Their aim is to properly enter the second hand car market by the close of the financial year.
Skoda hopes to be selling 1.5 million vehicles worldwide by the year 2018. Volkswagen believes that their Skoda brand can play a pivotal part helping the company achieve their number one spot by the year 2018.
It is no secret that the European car market is a poor one at the moment. Plenty of established car brands including the likes of Fiat, Vauxhall and Ford are struggling to make an impact. The market in India is much more complicated market with many more factors needed to be considered before cars are sold. Skoda believes that their new strategy will enable them to connect to more customers. More and more consumers are now turning two second hand vehicles as they pose a more affordable prospect.
Sudhir Rao, the Managing Director of Skoda said “We are working on putting in place a comprehensive growth strategy to penetrate deeper into the country with our range of products. We will not trigger discount wars to boost numbers but we are working on entering the pre-owned cars business to introduce more customers to our brand by the end of the year”
There is a lot of work and research to be done however. They plan to set up around 150 dealerships over the next two to three years. That would greatly expand the current number which is 102.
Why are buyers opting for more used vehicles? Interest rates are too high for most customers at the moment.
Skoda believes that by connecting with the second hand car market, they will be able to register more sales of new cars in the future.
We believe that Skoda India is carrying out a very clever strategy. By expanding their sales with quality used cars they will connect with more customers who may be inclined to buy Skoda’s new cars in the future. As mentioned earlier India is a tough and complicated to deal with. Skoda’s second hand cars must be spot on in all areas if they are to be a success.