Product Repositioning: Skoda India plans massive price cuts for the Fabia and the Octavia

Skoda Fabia

Skoda India is mulling a product repositioning strategy that would involve massive price cuts. Skoda India’s board member Thomas Keuhl has just said that Skoda India is planning to slash prices of two products, the premium hatchback Fabia and executive sedan Octavia. With the Volkswagen Polo set to be priced in the INR 5-6 Lakh bracket, Skoda India will sell the Fabia at a price point that is 7-10% lower than that of the Polo. so that means that new customers can look at a 10% discount on the Skoda Fabia.

Skoda Octavia

Meanwhile a refreshed Fabia will be introduced in the second half of this year with variants like the basic Elegant, the offroad Scout and the premium Sport. Skoda is completely repositioning the new Octavia to take on mid-range sedans priced between INR 7.6-10 Lakh against the current model that sells for INR 10-11 Lakh.

While these massive price cuts will come as welcome news for prospective Skoda owners, existing Fabia and Octavia owners will certainly feel terribly shortchanged as the already weak Skoda cars’ resale value will plummet to abysmal numbers.

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