During the recent 10 months since August last year, Shanghai VW Skoda has introduced 4 new cars into market. It is confirmed that Winfried Vahland, VW's China president, says Skoda shall introduce 1 new car every half year.
On May 18, new Octavia, which take largest sales of Skoda in China, launched market. It is expected to break 0 growth of Skoda in China for recent 2 years. However, brand build and channel shortage still troubles Skoda.
Since Skoda launched Chinese market of year 2005, the brand always always little brother of Shanghai VW sales. With price advantage and same platform quality, Skoda becomes a high cost performance instead of Shanghai VW since it enters Chinese market. Sales of Skoda even 3- 4 times growth after 4 years. However, growth of Skoda raises so fast and so short. Skoda says goodbye to high growth since the 6th year it enters Chinese market. Growth of Skoda is almost close to 0.
Insider tells reporter, product introduction shortage is not the only reason contributes to Skoda growth slow down. Besides, product line of Skoda is overlapped with product line of Shanghai VW. It makes sure that Skoda, little brother of Shanghai VW, could not move too further.
At present, as a sub-brand of VW, Skoda enters Chinese market as a technology provider, but does not own ability to operate separately. No matter product strategy or sales right are controlled by Shanghai VW. “Shanghai VW in charge of sales. Skoda should be responsible for brand build. However, Shanghai VW pays more attention on VW brand build, but allocate little resource to Skoda.”A person familiar with Skoda says. Normally, as long as foreign brand launching Chinese market, brand build is leaded by foreign part, such as VW China, Toyota China and BMW China huge volume marketing spend in China.
Customers in China know that Skoda belong to VW. However, few of them know that the brand owns 120 years history when Skoda found in year 1895. And how many of them know “Human Touch”, the after sales service provider of Skoda, is one of the most famous automobile service companies?
