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Volkswagen to reposition Skoda brand in India

Good news for Skoda lovers. Volkswagen has decided to reposition Skoda brand; that is Skoda will be positioned below the Volkswagen. This can happen only if Skoda car prices are reduced which is good news. Volkswagen owns Skoda and Audi and all over the world the parent VW sits between Skoda and Audi in terms of brand value. Here in India Skoda and Volkswagen have similar brand value which is seriously hampering Volkswagen’s brand image.

Skoda with its first vehicle in India ‘Octavia’ has built a reputation of a luxury car maker. The launch of Superb and Fabia which are best in terms of luxury in their respective class has put Skoda brand at the top of the chart. The Larua took off from where Octavia left. Having a good brand value is an asset to the company. But here the parent company Volkswagen thinks otherwise because Skoda is seriously denting Volkswagen’s image in India.

Volkswagen known to make quality cars is struggling to build the brand. Rivals such as Hyundai and Ford are delivering products which are better value for money cars. Volkswagen cars are no doubt the best in their class but somehow are not able to sell in numbers the company expect.  With reducing Skoda car prices Volkswagen can position itself clearly where it deserves to be, but in India it will take some time, may be another 2 to 3 years. 
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