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The recent budget session announcement which saw a rise in the customs duties on CKD and imported cars is affecting foreign carmakers. The carmaker said it will increase prices across its range from March 2018.
The company doesn’t want to transfer all the burden to the buyer immediately, instead it has chosen a multi-step method to implement the price hike. The 1 percent hike will see prices increased anywhere from Rs 10,000 to Rs 35,000 depending on the car. This could go up to 4 percent in the future – which could mean an increase as high as Rs 1.5 lakh.
The company uses 55 percent of local content on average, across its model range. Engines and gearboxes are imported and assembled at its assembling plant in Aurangabad, Maharashtra. The Aurangabad plant can make 40,000 units and makes the Octavia, Superb and Kodiaq. The Rapid, Skoda's entry-level model, is manufactured at parent company Volkswagen’s plant in Pune.