Skoda and Volkswagen Products Will Be Well-Differentiated in Future

[AMG]

As a result, the upcoming face-lifted versions of the Vento and the Rapid are expected to look significantly different. The new Rapid is likely to be designed on the lines of the Skoda Octavia while Volkswagen will add some original spice to the Vento.

“VW is reworking on a product portfolio strategy, which clearly looks into deeper differentiation of products sold by Volkswagen and its Czech unit Skoda in India, along with entry-level cars from Audi,” said Mahesh Kodumudi, managing director of Volkswagen India and the German group’s chief representative in the country.

He further added, “For future products, we are making sure we don’t rebadge with some minor cosmetic changes. Badging of one as another and with prices overlapping each other is a sure recipe for cannibalisation,” he said. “We will stop doing that.”

Before the launch of the Rapid, Volkswagen Vento’s sales were 2,800-3,000 units a month. Post the Rapid’s entry, the volume has come down to 2,000 units in fiscal 2013 and 1,600 in the following year ended in March 2014. Skoda Rapid sold around 1,600-1,700 units per month. Between April and July this year, the Vento posted just 800-900 units a month, whereas the Rapid averaged about 750, which is just 10-12% of the average sales by the mid-size segment leader, the Honda City.

Source: Motoroids and ET

 

[vm2011]

In 2016 a all NEW Rapid is expected, which will totally differentiate itself from Vento.
Ofcourse being associated with VW Mechanically we cannot expect it to differ but externally and interiors it will distance itself from the same.
The 2016 Rapid is expected to come with a higher level of differentiation in terms of features offered, while continuing to sit below the Volkswagen C-Segment sedan in terms of price and positioning. Skoda India is said to be working on a plan to address customer grievances.
Skoda is also planning to sell parts online, a strategy that could allow independent car workshops to service and maintain Skoda cars outside the traditional after sales service network.

Starting with Rapid, Skoda to localise cars for India | Latest News & Updates at Daily News & Analysis

 

[Akash1886]

@AMG, If Rapid shall be designed on the Octavia's platform then how will Skoda fill the gap of catering the customers of respective segments? This thought process will kill the customer base of Skoda. This strategy needs more thought prior to being implemented.

Re-badging is surely pointless in terms of sales since at present the Vento and Rapid are on similar platform except their cosmetic changes here and there. If they genuinely wan't a "deeper difference" then they need to surely work on a new design without killing the demands of the respective segments. In short, they would be killing their portfolio if they try to merge 2 segments/ designs.

@VM2011, The 2016 Rapid can definitely be different from its earlier version and from Vento too. Reasons for differentiation for the former and latter are:

1) From Skoda's point of view, Rapid has been in the market for about 3 years and its right time for it's mid-life makeover. Though recently it was announced that Skoda Rapid will be launched with 1.5L TDI DSG engine that was tested for Polo by VW.

2) From the VW's point of view, they want to differentiate their product from Skoda purely because of brand's value (not image) here in India. In comparison to VW, general customer relates to Skoda and it's producs more since Skoda has existed here in India prior to VW's entry in India and it's merger with Skoda in 2009. Hence, to avoid identity clash which is common for them and at the same time, improve on the sales with their new cars they are trying to segregate both platforms and respective designs for future.

As for their After sales, Skoda needs to involve itself with the dealers like all other brands do so that they can improve upon the customer's experience in terms of purchase and after sales. Also, selling spares online will surely help independent garages for the maintaining Skoda cars outside the Authorized Service Stations but then how will the Authorized Service Stations be able to handle their expense towards the establishment costs? If people go for other garages then how will the authorized workshops survive?

Regards

Akash

 

[AMG]

@AMG,

1 If Rapid shall be designed on the Octavia's platform then how will Skoda fill the gap of catering the customers of respective segments? This thought process will kill the customer base of Skoda. This strategy needs more thought prior to being implemented.

2Re-badging is surely pointless in terms of sales since at present the Vento and Rapid are on similar platform except their cosmetic changes here and there. If they genuinely wan't a "deeper difference" then they need to surely work on a new design without killing the demands of the respective segments. In short, they would be killing their portfolio if they try to merge 2 segments/ designs.

@VM2011, The 2016 Rapid can definitely be different from its earlier version and from Vento too. Reasons for differentiation for the former and latter are:

1) From Skoda's point of view, Rapid has been in the market for about 3 years and its right time for it's mid-life makeover. Though recently it was announced that Skoda Rapid will be launched with 1.5L TDI DSG engine that was tested for Polo by VW.

2) From the VW's point of view, they want to differentiate their product from Skoda purely because of brand's value (not image) here in India. In comparison to VW, general customer relates to Skoda and it's producs more since Skoda has existed here in India prior to VW's entry in India and it's merger with Skoda in 2009. Hence, to avoid identity clash which is common for them and at the same time, improve on the sales with their new cars they are trying to segregate both platforms and respective designs for future.

As for their After sales, Skoda needs to involve itself with the dealers like all other brands do so that they can improve upon the customer's experience in terms of purchase and after sales. Also, selling spares online will surely help independent garages for the maintaining Skoda cars outside the Authorized Service Stations but then how will the Authorized Service Stations be able to handle their expense towards the establishment costs? If people go for other garages then how will the authorized workshops survive?

Regards

Akash

1 The new Rapid is likely to be designed on the lines of the Skoda Octavia while Volkswagen
Designed hai bhai. Just the styling cues. Not the platform.

 

[Akash1886]

1 The new Rapid is likely to be designed on the lines of the Skoda Octavia. Just the styling cues.

I really doubt the premise of design cues!

Here is a comparison of designs of Octavia & Rapid. The new Rapid is nothing but a shrunken Octavia. Hence, another upgrade with design cues of Octavia might miserably fail.



The 2016 Rapid is likely to be based on cues from Vision C concept that would be first shown in Superb. The entire design platform of Skoda shall change from there on probably.

Pic

Regards

Akash

 

[AMG]

Thats only styling wise. Underneath its the same car.

Or maybe not. I'm not sure.

 

[Autoenthusiast11]

The Rapid and Vento both are currently built on PQ 25 platform and will continue till 2019. In 2016, Rapid is shifting to MDB (modular diesel engine system) engine platform and Vento will follow.

While both the models will shift to new vehicle platform MQB from 2019 onward.