In light of the recent budget session announcement to increase the customs duties on CKD imports and other imported cars has started to cause issues for various foreign carmakers. One of them, Czech car brand Skoda has announced an increase in prices across its entire product range in India starting next month, March.

Skoda has, however, is not going to transfer the whole burden on the car buyers, or at least for now. Skoda has chosen a multi-step method to implement the price hike. Initially, the prices will increase by 1 per cent, which translates to an increase in the prices ranging from Rs 10,000 to Rs 35,000 across its lineup. Later the price will be increased by up to 4 per cent which translates to roughly Rs 1.5 lakh across the range.

Skoda Auto in India has a localisation level of around 55 per cent, across their model lineup. The company imports engines and gearboxes which are assembled in Skoda cars at its assembling plant situated in Aurangabad, Maharashtra. Skoda has been trying consistently to increase the local content usage to over 60 per cent so as to achieve a 5 per cent market share from the current 2 per cent.


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