Skoda Auto India has announced that the company will be increasing the prices of its products across the entire range in the country from 1st March, 2018. The Czech car maker has said that it has taken this decision of increasing its car prices owing to the revision in the customs duty that was announced in the recent Union Budget.
The Volkswagen owned company has revealed that its car prices will go up by 3-4 percent depending on the car model and variant. However, the company has also announced that to lessen the impact of this price hike, Skoda India will be increasing the prices of its products in a phased manner. Thus, on 1st of as of March 1, 2018, prices of the all car models in the entire range of Skoda Auto India will be going up by 1 percent, which means the prices will go up by around Rs. 10,000 to Rs. 35,000 depending on the car model and variant.
In the latest union budget, the Finance Minister proposed increasing the customs duty on those vehicles which are not fully manufactured in India but are only assembled locally in the country by using kits (completely knocked down or CKD) that are manufactured abroad and imported into the country. The customs duty for these vehicles that are assembled in India with the CKD kits has been raised from the previous 10 percent to the current 15 percent. This customs duty increase on the CKD cars has impacted car manufacturers like Skoda in India badly. At present, none of the Skoda car models are 100 percent localized, which is true for the company’s latest and flagship product the Skoda Kodiaq SUV, which also comes to the country through the CKD route. This customs duty increase will finally impact the customers as well, as they will have to shell out more money to buy CKD cars.
Skoda Auto India has recently hiked the prices of its products for the domestic car market. The Czech automaker has increased the prices across its range of offerings in the car market of India that came into effect on 1st of January, 2018, as a part of the routine annual product price increase that all the car majors usually follow in India every year. Skoda had attributed the last price hike to the altering market conditions and multiple external economic aspects. In January this year, Skoda India had increased its car prices by 2 to 3 percent.
Skoda Auto India has also made the announcement of a new loyalty bonus scheme alongside the recent price hike announcement. As per this loyalty bonus scheme the existing Skoda car owners who are planning to own another new Skoda car would get to enjoy up to Rs. 50,000 cash benefits. This new loyalty bonus could be the Czech automaker’s strategy to urge the Skoda car lovers to make an urgent purchase before the car prices further go up in March and later this year.