Skoda Superb’s India Arrival to Be Exclusive as an Import
Skoda Superb’s India Arrival to Be Exclusive as an Import
Skoda’s flagship executive sedan, the Superb, has entered its fourth modern generation, but its future in the Indian market is under scrutiny. Historically, every iteration of the Skoda Superb has been available in India, but changes in its production logistics are causing the brand to rethink its strategy for the Indian market.
The Skoda Superb’s production has moved from the Kvasiny plant in Czechia to the Volkswagen Group’s plant in Bratislava, Slovakia. This shift was made to increase capacity for the production of the Octavia and Skoda’s electric vehicles at Kvasiny. The move has created a significant challenge for the Superb’s continued presence in India, as the Bratislava plant lacks the facility to produce Completely Knocked Down (CKD) kits. CKD kits allow vehicles to be assembled locally, thus avoiding hefty import duties. The Bratislava plant’s current focus is on producing complete vehicles for local sale and export.
Adding a CKD facility to the Bratislava plant would require a substantial investment, which Skoda India finds hard to justify due to the declining global demand for sedans. As Petr Janeba, the brand director for Skoda India, explains, “There is a new Superb coming but only as a CBU (Completely Built Unit). It will not be an assembly of parts and components because the Bratislava factory, where the Superb is produced, doesn’t have a CKD facility. They can make one if they want, but the whole ecosystem will call for too much of an investment just for one market.”
The Indian market for sedans, particularly in the premium executive segment, is shrinking. The Skoda Superb, which competes with the Toyota Camry, saw its sales peak in 2010 with 4,161 units sold. However, by 2022, this number had dropped to 1,609 units. The third-generation Superb was pulled from the market following the introduction of BS6.2 norms last year and reintroduced as a CBU import in March 2024.
However, the reintroduction has not gone as smoothly as hoped. Despite bringing in 100 units of the imported Superb, dealers have struggled to sell them, with less than 40 percent of the allocation sold to date. The high price of the CBU model, at Rs 54 lakh (ex-showroom), significantly more than the Rs 38 lakh for the CKD model, is a major factor. This makes the Superb more expensive than even the Audi A4, despite the Superb’s increase in dimensions, luxury, and technology.
Importing the next-generation Skoda Superb presents both challenges and opportunities. One significant challenge is the Advanced Driver Assistance Systems (ADAS) now mandated in Europe. A CBU import would come equipped with ADAS by default, but this technology needs to be calibrated for Indian conditions. This requires the vehicle to be homologated for India, adding further costs. According to Indian regulations, CBUs of up to 2,500 units can be imported without homologation, but beyond that, homologation becomes necessary.
Despite these challenges, there is a potential opportunity to bring back the diesel engine for the Superb. The VW Group’s TDI engine has a loyal following in India, and reintroducing a diesel option could give the Superb a unique positioning in a segment currently dominated by petrol and hybrid engines. Skoda could avoid the costs of homologating the diesel engine for India, but even a fully imported diesel Superb would likely be expensive due to the 100 per cent import duty.
The decision to import the new Skoda Superb as a CBU rather than assembling it locally reflects the broader challenges facing the sedan market in India. With declining demand and high import duties, the feasibility of bringing the Superb to India is under significant scrutiny. However, Skoda’s potential reintroduction of a diesel engine and continued commitment to advanced safety technology could offer unique advantages in the market. As Skoda navigates these complexities, the future of the Superb in India remains a topic of keen interest among automotive enthusiasts and industry watchers alike.
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