Global automobile manufacturers like Skoda and Volkswagen are said to be engaging Indian companies to help with the engineering of their products for the Indian market.

A report by Economic Times suggests that Czech carmaker Skoda has awarded a contract to Mahindra Engineering Services (MES) to engineer the facelifted Rapid sedan, which is expected to be launched soon. MES shall be responsible for converting the initial concept (codenamed P Release) to a production ready model (codenamed B Release). This means that Mahindra will execute the styling that Skoda provides and tailor it according to Indian needs.

Since its launch, the Skoda Rapid has not seen any updates to its styling except the addition of projector headlamps. The interior of the car was reworked in 2013.

The Rapid facelift, which is understood to have been codenamed SK 251 GP will be styled to look like the rest of the Skoda range which includes the new Octavia and facelifted Superb. The most noticeable changes to the Rapid will be a restyled grille and headlamps.

Apart from Skoda, carmakers like Volkswagen, Nissan, Jaguar Land Rover and Chrysler are also said to be using services of Indian companies for engineering some of their products.

Skoda has launched a special edition of the Rapid sedan called the Ultima edition at Rs. 8.33 lakhs (Ex-Showroom New Delhi). This Ultima Edition will be available in Ambition and Elegance variants, on the petrol and diesel engined options.

Skoda Rapid Ultima: (Changes / Features)

• Skoda’s new logo
• Body decals
• Projector headlamps
• Seven-spoke alloys
• Parking sensors
• Garmin and Tom-Tom navigation
• Bluetooth phone connectivity
• On-board computer
• Multi-function steering wheel
• Side plaque with Ultima branding
• Airbags now offered on the middle variant
• Leatherette seat covers & Leather package
• Ultima branded floor mats
• Door sill moldings with Ultima branding

Mechanically, the Rapid Ultima is similar to the other Rapid variants and uses the same petrol & diesel engines, without any changes. This Rapid Ultima Edition is going to be available for a limited period only & is available at all Skoda dealerships from March 1st, 2014.

The Rapid Ultima edition will be priced as follows (Ex-showroom New Delhi):

• 1.6 MPI MT Ambition Plus: Rs. 8,33,156/-
• 1.6 MPI AT Ambition Plus: Rs. 9,30,915/-
• 1.6 MPI MT Elegance: Rs. 8,95,355/-
• 1.6 MPI AT Elegance: Rs. 9,91,920/-
• 1.6 TDI Ambition Plus: Rs. 9,40,788/-
• 1.6 TDI Elegance: Rs. 9,97,661/-

Czech manufacturer, Skoda is rumoured to be readying another variant of its Rapid saloon for the Indian market. A report on Zigwheels claims that it will be called the Ultima and is expected to be positioned above the Elegance variant.

A look at the Ultima reveals that all Skoda has done to distinguish it from the regular Rapid is garnish it with a set of stickers on the the bonnet, the roof and the sides. There is also an “Ultima” sticker sitting above the Rapid badge on the boot lid. There is no other change to the exterior of the car.

On the inside, the Ultima features two-tone leather seats and a two-tone dashboard with a lighter shade for the top portion. The plastics on the centre console and around the AC vents sport a chequered theme. Additionally, Skoda has equipped the Ultima with rear parking sensors and a reversing camera, Bluetooth connectivity and climate control.

The Ultima will be powered by the same 1.6-litre, TDI motor that is found under the bonnets of the regular Rapid and the VW Vento.  Producing 105 PS and 250Nm of torque, it is mated to a 5-speed manual transmission and returns 20.5 km/l, a figure certified by the ARAI.

The Ultima is expected to go on sale in February 2014 and cost more than Rs. 10 lakh (ex-showroom Delhi). It is the final edition of the current Rapid. A major facelift for the car is due in April.

Skoda's Rapid has been spotted in Pune with the companies new logo, as per images posted by auto website oncars.in.

The new logo does not feature the words "Skoda Auto" inside the logo. The winged arrow symbol is now in "Skoda Green" instead of the earlier "Natural Green". 

Skoda will be hoping the new logo will change its fortunes which are on the decline here.

Skoda's only real hit was the Octavia and even the competent Rapid has been unable to rake in the numbers for Skoda.

The Rapid has been outsold by the costlier Vento, between January to April of this year, VW sold 8767 units of the Vento, compared to 6001 units of the Rapid sold in the same period.

Earlier this week, Skoda pulled the plug on its Fabia hatchback due to poor sales.

Related News Item.

It's raining unique offers on cars from the VW Group. First, a Skoda dealer offered a free Fabia with every Rapid (Related Link). Then, VW launched a 'buy now, pay after 1 year' scheme for the Vento.  

Now, Skoda announces 100% financing for the Rapid. The new scheme will cover the ex-showroom price as 100% of the loan amount. Customers do not have to make any down payment at all. This is a limited period scheme available from 8th - 18th April, 2013. 

For the Jan - Mar 2013 quarter, Rapid sales have hovered around the 1,500 / month mark. Not much of a show from a sedan that is well-rounded and sold at a value-for-money price.

Torque Auto - a Skoda dealership from Gujarat - has introduced a unique offer. If you buy a Skoda Rapid, they'll hand over a Fabia free of cost to you 5 years down the line. 

The Fabia will be a base variant, while the choice of engine (petrol or diesel) is dependent on whether you choose a petrol or diesel Rapid. This is quite an ingenious campaign and has created a reasonable amount of buzz. However, it's unlikely that too many potential customers will buy a million-rupee sedan based on the promise of a free hatchback 5 years later. 

Skoda dealers have been offering discounts of Rs. 100,000 on the Rapid. Of course, if you buy a Rapid under this scheme, no discounts are applicable. When we called the dealer, the sales personnel were initially hesitant to share any information on the phone, insisting that we visit the showroom for full details. On prodding, it was revealed that a brand new Fabia will be handed over in the year 2018. All taxes (including VAT, road tax etc.) and insurance will be borne by the owner. If you'd rather have cash, Torque Auto will pay you Rs. 350,000 in the year 2018. 

Torque Auto must have excess inventory of the Rapid or the Fabia, or both. The Fabia is a market dud, selling barely over 200 units each month. This scheme could also be a way of raising finance. To the dealer, the Rs. 1.75 lakh margin on a 2012-build Rapid (with zero discounts) could be worth Rs. 3.5 lakhs 5 years later. 

We find it surprising that Skoda has allowed its dealer to run this ad; the campaign could be damaging to the "Fabia" as well as "Skoda" brand names.