Skoda To Discontinue Fabia in India


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Skoda is all set to pull the plug on the Fabia and will stop selling its only hatchback in Indian the market. However, Skoda will finish assembling Fabia kits before stopping production and hence the Fabia will continue to be sold, possibly till the end this year, until stocks are exhausted.

Skoda’s decision to withdraw the hatchback from the market was prompted by the huge losses the company has been incurring on the Fabia. Successive price cuts over the years to prop up demand has seen this car shedding almost 40 per cent of its price tag since its launch in 2008, which badly squeezed margins. The Fabia’s relatively low level of local content made it very expensive to produce and this problem was compounded by the Indian Rupee depreciation of 36 percent since 2008 which pushed up costs even higher. According to industry sources, Skoda was losing as much as Rs. 1.5 lakh per car and hence the company was deliberately refraining from aggressively marketing the Fabia which sold a meagre 3,343 units in the 2012-2013 fiscal year. Last month Skoda sold a paltry 115 units. Earlier this year, Honda withdrew its premium hatchback the Jazz, for similar reasons as the car was just too expensive too produce.

Skoda is unlikely to re-launch the Fabia before 2015 and its not clear if the successor will be a modified version of the existing car (SK 250) or all the all-new Fabia (SK 260) that’s due for an international launch next year. However, given the low demand for the Fabia any option to bring it back to Indian shores has been put on hold for the moment.

This strategic decision to discontinue the loss making Fabia is intended to help Skoda India focus its resources and efforts on new product launches and customer satisfaction which has been the Achilles Heel of the company. The company is betting big on the new Octavia which the company hopes will become the segment leader after its launch this this August. “We can re-deploy our resources from the unprofitable Fabia towards brand building for our other products and dealer network expansion” said a company official.

SCOOP! Skoda to discontinue Fabia in India | News | Autocar India
 

Vishwas

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Fabia was a good and better looking hatch which puts many hatches into shame, the downfall is its company's pathetic reputation which has made the fabia to go away, feel pity for its owners.

I always liked the plushness in Fabia and its stance, could have been a hit if it had come under MS badge.

I think except Rapid, all other products is killed by its competitors (like Fabia giving way to liva, i20 and swift, Laura to XUV)
 
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Fabia has failed because they are unable to match the quality & services offered by the competitors. They are not able to sustain Indians expectations that is there mistake, others can not be blamed for that.

Bye bye Fabia[;)]
 
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This is one sad news about a very good car, the problems for Skoda Fabia were

1. High price tag
2. High service cost initial days of launch
3. Little low GC
4. High spares cost and availability
5. High NVH levels
6. Poor marketing

This story is similar to the Ford Fusion an excellent car and my Favorite too
 
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Skoda Fabia is really a very good vehicle. I feel very sad for it. The main reason for discontinue of Fabia will be its bad service.
 
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Btw, what will happen to people who availed 'Buy Rapid now and own a Fabia free later' [thinking]
Settle with 3.5L cash.

That said, the fabia had set the standards in how the hatch should "feel" for the price it was sold it. Class best build quality, precision, attention to detail let down by poor perceived reliability record, underwhelming engines and poor service.
 
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People would be more than happy with cash.

Yes, Fabia's build was top notch. It was neately put together car compared to its competitors when it was launched. Offered one of the best boot space for a hatch. Fabia's demise was destined with the advent of Polo from the big brother sister company. It turned into a completely forgotten hatch which received no major updates.
 
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Though I do neighther own a skoda nor I intend to buy one in near future, but I always had love or say infatuation toward them.

I felt very sad to know the future of fabia.The solution they have found for fabia fumble i.e. discontinuation, can be described in following words.
'Horse is ill and injection is given to the saddle.'

Rather they should have taken clues from fiat and inceased the GC and ASS .
 
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I agree it was Polo which killed the Fabia. Fabia sales slowed down after Polo was launched. Previous generation of Polo Engines were onto Fabia and at similar pricing Fabia had to go down. I had almost decided for Fabia before I took my Swift. Last minute changes saved the day
 
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Skoda should actually exit India completely & with VW here, doing good, I think Skoda should now look back to East Europe & African countries only. Hopeless company it is, no wonder then the name Skoda in Finnish means damage or loss.[lol]
 
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