Czech automotive giant Skoda Auto has begun setting up a new management structure in order to propel growth in India. With this move, it aims to make the domestic market a major contributor to its international sales target of 1.5 million units over the next 6 years. The company is also investing more than Rs. 300 crores in the country in order to raise localisation levels and increase production. It is also making all necessary efforts to enhance its product portfolio in India in order to improve sales figures in the nation.
Juergen Stackmann, Skoda Auto Board member and the in-charge of Sales and Marketing, said, "To handle our future growth plan and its cross-functional tasks for the very important Indian market, it is necessary to have a corresponding management structure. India is one of our main strategic pillars of our growth strategy. We establish a structure in India that will also apply in other major markets to manage future growth."
Skoda Auto India recently created the position of Managing Director, which was filled by Sudhir Rao. The company has also revamped the organisational structure in the Sales and Marketing department. It has appointed Kamal Basu, who worked with Saatchi & Saatchi before taking up this assignment, as the chief of marketing, while Ashish Deshpande has been awarded the position of Head of Sales. In this new hierarchy, the Executive Directors of Sales and Marketing, Human Resources, Finance and Technical departments will answer to Rao as well as the respective Skoda board members. With this strategy, the manufacturer will be able to make decisions faster and adapt to market changes quickly. Rao himself will report to the board members of Skoda responsible for India.
The company has been quite aggressive over the past few months, with launches like Skoda Fabia Scout and the new low-priced variant of its premium sedan Superb. Its Rapid entry level sedan has been received quite well in the Indian market, while the entry level Citigo hatchback is expected to hit in India in the next two years. According to experts, Skoda is a strong brand in the country and well positioned in the premium segment, but it will have to alter its pricing strategies in order to cater to the mass market.
On this, Rao stated, "We cannot have any weaknesses in our product offering to the end customers. A greater emphasis is being put on the pace of dealership reach into the country. We have a competitive portfolio today, but to aspire to higher volumes, there is need to appeal to a wider target market and we are working on those directions."
