New Delhi, May 17: Skoda is all set to pull the plug on the Fabia and will stop selling its only hatchback in Indian the market, according to reports published in auto blogs. Sources also say that the company's decision to withdraw the model is prompted by losses it has been incurring on the Fabia.
The Fabia's relatively low level of local content is among the top reasons that makes it expensive to produce here and this problem is compounded by rupee depreciation. Sources say Skoda was losing as much as Rs 1.5 lakh per car and hence the company was deliberately refraining from aggressively marketing the Fabia which sold a meagre 3,343 units in the 2012-2013 fiscal year. Last month Skoda sold a paltry 115 units.
At the same time the move is also viewed as something which will boost the sales of Volkswagen' Polo.
It is unlikely that the company would re-launch the Fabia before 2015. As of now the company is betting big on the new Octavia which is slated to be launched this August.
