Can Skoda get back on its feet in India?

Siddharth hopes that Skoda can get back on its feet in India by finally sorting out its sales and service network. Because, well, they make great cars – and there are more on the horizon...

If there was anyone who killed the Skoda brand in India, it was Skoda itself. Now there’s little point in getting into why or how that happened. The fact is that it’s left the Czech brand in a deep hole to dig itself out of. And it’s more ironic than what’s happened with, let’s say, GM in India – which, after offering terrific products just right for the country (such as the Beat and Cruze) suddenly brought us disasters (like the Enjoy and Sail) and shot itself in the foot. Ironic, then, for Skoda, which continued to bring us superb products (pun intended), but faltered on pretty much every other front thereafter – and especially anything to do with actually interfacing with the customer. Buying a Skoda can sometimes mean terrific value, regardless of the segment it operates in. Buy now, pay next year – well that only sweetens the deal, now doesn’t it? But none of that was enough to guarantee enough takers.

Now, for the company’s sake, I hope Skoda can turn things around. I was encouraged to hear that it’s global management hasn’t yet written India off, and appears to be making a go at it once more – with fresh investments (to the tune of `100 crore) and some promising new models that are coming over the span of the next 16 months. And, typically, that’s the part that gets the most attention – as it gets us motoring hacks all excited. The Kodiaq full size SUV will be Skoda’s first, and will play the role of the brand flagship worldwide. It’s expected to enhance sales volume for Skoda globally too. We’ll also get the Octavia RS – most likely in both diesel and petrol avatars, as well as the face-lifted Rapid. And there’ll be one more, as yet unnamed, product.
But what’s really got my attention is the money being invested in sorting out its brand image and terrible after sales reputation. Skoda is now offering a best-in-class four-year warranty and two-year roadside assistance. Skoda is also offering service maintenance packages that aim to provide peace of mind on after-sales costs to better compete with the likes of Hyundai. And I applaud that effort.

But – and here’s the kicker – for all of this to work Skoda must change the inherent way in which its workshops and dealers have operated. Making money is not the same as running a successful business. And unless Skoda can really drive that point home across its network, no amount of advertising or schemes (great cars notwithstanding) will help change Skoda’s current position. The company has the unique advantage of having had a terrific start in India – despite being virtually unknown at the time. Its customers swear by the cars themselves (barring the nightmare service experiences). So, now, let’s hope that Skoda can pull through. A stronger Skoda (and other brands too – don’t get me wrong, this isn’t a plug piece for Skoda) will only ensure better quality products overall and better opportunity for consumers.