Skoda puts Indian investments on hold

Skoda has said that it has put its Indian investments on hold due to uncertainties with regard to policy framework. The Czech automaker in an interview with ET has said that it has put its small car project on hold and will invest on facilitating existing projects. 

Sudhir Rao, chairman and MD of Skoda Auto India, said that various issues like technology transfer agreement; fine by the CCI on several automakers as well as several other issues has prompted it to put its plan on hold. He added that they would reconsider the decision if the uncertainties with regard to policy is cleared. 

It has currently taken up the services of Mahindra engineering to assist in the development of the completely new Rapid. They aim to bring costs down and launch the car within the next three years. 

We believe that parent company VW is looking to bring SEAT as the budget brand in its line-up and will most likely push Skoda as a more luxurious option in the Indian market.    

Source:ET