Spare parts warehouse in Aurangabad coming up.

Our Bureau

Pune, Feb. 20 Automaker SkodaIndia is set to launch a car exchange programme in a new format that is bigger and different from Signature, its existing pre-owned car business, and is working on building this as an independent brand.

Under the new format, which will be rolled-out in the second quarter of the year, customers can bring in any car and exchange it for a Skoda vehicle.

Elaborating on this, Mr Ashutosh Dixit, General Manager, Sales, said the company was building up the programme which will be run by dealers as separate business units under their dealerships.

“We will encourage dealers to set up these divisions, and we will centrally run and control them,” he said, adding that the company was in the process of setting up a team to focus on the initiative.

SkodaIndia will also help dealers procure finance for the venture through Volkswagen Financial Services, with who it already is in talks for providing prospective customers customised finance options.

“Branding is possible for this initiative and I expect at least half of our dealers (60 to date) to be involved in it when we launch in around six months’ time,” Mr Dixit said, speaking after the inauguration of Europa Auto – its 60th dealership in India and the third in Pune.

Meanwhile, SkodaIndia is launching its first spare parts warehouse in India at Aurangabad early next month. Built along the lines of the global spare parts centre at Mlada Bloeslav in Czech Republic at a cost of Rs 12 crore, the facility will become operational on March 1.

While serving the Indian market, it will also support the localisation process that will start with the production of the Fabia in the Volkswagen plant at Chakan.

(This article was published in the Business Line print edition dated February 21, 2009)
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