Team-BHP stands for the TRUTH. But Skoda wants to “instigate” Team-BHP and its users!

[banwari]

Originally Posted by GTO

Butttttttttttttttttttttt, now that you are well aware of the entire story, I guess we can expect a similar thread in the carwale forums? A thread that highlits the ordeals that Harish went through, or how Skoda is threatening the netizens right to freedom of speech? This is a high priority matter to Team-BHP, carwale and each & every website out there. I'd be more than happy / willing to withdraw my previous statement back if a thread on these two incidents is published on carwale, since you insist carwale is unbiased as well. I'd love to see your support in this matter. After all, we are all standing up for the Indian car owner & enthusiast.

Yes, I know the entire story now. However, I would still like Harish to post the problem in CarWale forum with enough evidence (copy the important facts/pointers from here to there). If it is not possible because of some reason, I will think about allowing this exception. I am not arrogant here but I have my reasons to ask for this. If Harish posts at CarWale forums, CarWale will try its level best to get a Skoda personnel answer Harish's query. I promise.

Originally Posted by GTO

Of course I remember. You will understand that these are two extremely dissimilar matters. The example you've given is where one automotive website is looking for writers from another automotive website!! I don't think any website would allow such an article, thread or discussion due to inherent conflict of interests.

I understand the matters are highly dissimilar but trust CarWale wasn't eyeing at highjacking members from TBHP. We wanted to hire fresh talent (we had hired too) and I had thought that TBHP has lots of them and it will benefit TBHP too. Anyways, the example was not to corelate the two matters but to present the idea.

[diffsoft]

Originally Posted by amit

Looking at all these issues, I still don't understand few things.

- How are Skoda sales going up year after year?

Amit:

Skoda sales are NOT going up. In fact Jan / Feb 2009, their sales are down 55% vs year ago. Their sales in CY 2008 was 16,188 units (vs a stated target I recall in the press of about 24,000) which was about a 32% jump mainly because of Fabia (launched Jan 2008).

However their sales in Jan / Feb 09 in the Executive Segment (defined as 4500 mm and above - i.e Octavia / Laura) is down by 52%, when the segment was more or less flat.

Further their sales in the Compact Segment (i.e Fabia) was down by a whopping 58% in Jan / Feb 2009 vs Jan / Feb 2008. The compact segment was also more or less flat.

All these figures are based on the excel spreadsheet Team BHP gets from vasudeva.

Skoda sold about 640 cars monthly this year (March figure awaited); Fabia was just about 300; across 60 dealers - meaning 10 / 11 cars every dealer monthly.

Their market share is also down. Overall their market share is 0.5%; in the Executive segment, it has fallen to about 10% from 25.6% last year - this may be because of Linea which you may or may not want to count here. Even if you exclude Linea it is about 19.5% this year. Their management keeps touting that they are segment leaders - but it depends on how they define the segment. For instance their market share in the "premium compact" segment may be 100% as there is no other "premium compact" car maker.

Further I think Skoda is also probably squeezed on costs - their localisation is 5 - 10%, rest is imported from Czech and Euro has galloped past the Rupee lately making imports costlier and hence pushing car cost higher. Most of its competitors have relatively high localisation so their impact on costs will not be as bad as Skdoa's. So Skoda cannot increase its prices because competitors need not follow suit.

The next question is why is Superb then so competitively priced? I don't know; maybe it has localisation costing built it.

Cheers,

[navin]

Originally Posted by diffsoft

Further I think Skoda is also probably squeezed on costs - their localisation is 5 - 10%..Most of its competitors have relatively high localisation so their impact on costs will not be as bad as Skdoa's. So Skoda cannot increase its prices because competitors need not follow suit.

After 10+ years their localization is under 10%!

Skoda, if this is true it is plain bad business!

[anjan_c2007]

Will the marketing tactics of Volkswagen be the same? There is every possibility as they flourish under the same umbrella.They have a scant regard or commitment for the Indian market. The Polo will sink in this case.
The Skoda demeanor is appalling.I am sure this thread is being viewed by thousands and each one will spread the story around to let all know the kind of people they are.
And Audi is also under the VW management.

[Thad E Ginathom]

Originally Posted by diffsoft

Their market share is also down. Overall their market share is 0.5%; in the Executive segment, it has fallen to about 10% from 25.6% last year - this may be because of Linea which you may or may not want to count here. Even if you exclude Linea it is about 19.5% this year. Their management keeps touting that they are segment leaders

They say they are segment leaders with only around 20% of the segment?

There's a technical term for that, isn't there?

Wait...

Err...

Lying?

- but it depends on how they define the segment. For instance their market share in the "premium compact" segment may be 100% as there is no other "premium compact" car maker.

Ahh... lies, damned lies and statistics again.

[amitk26]

On a side note:

Just think how good this PR exercise in internet age will look on Meghana Chouksey's Resume now.

Imagine Skoda folds up or due to some other reason Meghna decides to switch jobs , Simple google search with name and company will throw up how good Skoda_Corporate performed on PR front for her employer
to prospective recruiters.

Frankly tell me guys /gals would you even call for an interview ?

Skoda Corporate listen .. listen for your own personal interest.

[Thad E Ginathom]

No, but there are probably very few of these marketing/PR types that I would employ. Even for a marketing job.


Errr... maybe especially not for a marketing job .

As to this individual; quite possibly she has been made a scapegoat, mouthpiece, whatever --- I don't think just one person was behind those posts, do you?---- which is very unfortunate for her.

[kingshukt]

Originally Posted by navin

After 10+ years their localization is under 10%!

Skoda, if this is true it is plain bad business!

This is correct. They do not even have a paint shop.

Their Indian contents are like: Tyres , batteries etc. Their body is imported in fully painted condition. Inspite of this they make a hefty profit. As such there is no need to localise.

[vineethvazhayil]

Originally Posted by kingshukt

This is correct. They do not even have a paint shop.

Their Indian contents are like: Tyres , batteries etc. Their body is imported in fully painted condition. Inspite of this they make a hefty profit. As such there is no need to localise.

That is a revelation! What happens in their plant in Chakan produce? I believe Fabia is going to be manufactured first up from there, till the time VW is ready to launch the Polo??

[arpandiv]

OT but related in a way;
Nummer Eins (the ex- dealer of Skoda in Mumbai ) has started out under the brand name "roadworx". As they say old habbits die hard, what roadworx has done is used a pic of Jitu's car (Ford_rocam's car) photoshopped it and put it in page 5. of Bombay Times today as an advertisment for their outlet !!

[Tejas@perioimpl]

Originally Posted by arpandiv

OT but related in a way;
Nummer Eins (the ex- dealer of Skoda in Mumbai ) has started out under the brand name "roadworx". As they say old habbits die hard, what roadworx has done is used a pic of Jitu's car (Ford_rocam's car) photoshopped it and put it in page 5. of Bombay Times today as an advertisment for their outlet !!

Ya saw that. Funny thing is that they are talking about servicing only german cars and show a honda!

Arpan, use your press contacts for more articles of harish's case (like you used to publicize yourself during the supercar show)...

[Dippy]

Originally Posted by arpandiv

OT but related in a way;
Nummer Eins (the ex- dealer of Skoda in Mumbai ) has started out under the brand name "roadworx". As they say old habbits die hard, what roadworx has done is used a pic of Jitu's car (Ford_rocam's car) photoshopped it and put it in page 5. of Bombay Times today as an advertisment for their outlet !!

They have even photoshopped a different reg. number onto the car. I saw the car closely, noticed the colour and intercooler and voila. There is no other car like in Mumbai. Anyone has a contact of the ad guys?

[arpandiv]

The ad agency is iB&W their contact number is 022-24920291.
When i called some peon picked up the phone.

[amtak]

Is it in today's Times of India? I couldn't find it in the e-paper.

Edit: Found it in BT.

[GTO]

Yes, I know the entire story now. However, I would still like Harish to post the problem in CarWale forum with enough evidence (copy the important facts/pointers from here to there).

That's the spirit, Banwari! Thanks for this. I am certain Harish appreciates your offer and will be on his way today.

Anyways, the example was not to corelate the two matters but to present the idea.

Again, we do not think any website would permit this. And it is an example irrelevant to this one. So let's leave it at that.

Originally Posted by diffsoft

Amit:

Skoda sales are NOT going up. In fact Jan / Feb 2009, their sales are down 55% vs year ago. Their sales in CY 2008 was 16,188 units (vs a stated target I recall in the press of about 24,000) which was about a 32% jump mainly because of Fabia (launched Jan 2008).

However their sales in Jan / Feb 09 in the Executive Segment (defined as 4500 mm and above - i.e Octavia / Laura) is down by 52%, when the segment was more or less flat.

Further their sales in the Compact Segment (i.e Fabia) was down by a whopping 58% in Jan / Feb 2009 vs Jan / Feb 2008. The compact segment was also more or less flat.

All these figures are based on the excel spreadsheet Team BHP gets from vasudeva.

Skoda sold about 640 cars monthly this year (March figure awaited); Fabia was just about 300; across 60 dealers - meaning 10 / 11 cars every dealer monthly.

Their market share is also down. Overall their market share is 0.5%; in the Executive segment, it has fallen to about 10% from 25.6% last year - this may be because of Linea which you may or may not want to count here. Even if you exclude Linea it is about 19.5% this year. Their management keeps touting that they are segment leaders - but it depends on how they define the segment. For instance their market share in the "premium compact" segment may be 100% as there is no other "premium compact" car maker.

Further I think Skoda is also probably squeezed on costs - their localisation is 5 - 10%, rest is imported from Czech and Euro has galloped past the Rupee lately making imports costlier and hence pushing car cost higher. Most of its competitors have relatively high localisation so their impact on costs will not be as bad as Skdoa's. So Skoda cannot increase its prices because competitors need not follow suit.

The next question is why is Superb then so competitively priced? I don't know; maybe it has localisation costing built it.

Cheers,

Diffsoft, some interesting analysis there. Shows that the diesel advantage is not enough for an Octavia or Laura. Word is now on the street of the expensive maintenance, potential reliability issues, lack of service support and Skoda's ignorant attitude toward their own customers.

About the low level of localisation, well, Skoda Europe did say that Skoda India is only a mere importer, correct?