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The local subsidiary of Czech carmaker Skoda said on Wednesday that it will start producing cars at its new greenfield facility in Aurangabad from January next year.
The company is also getting ready to launch the luxury car 'Superb', after completing the necessary homologation of the vehicle to check its suitability to local driving conditions, Skoda India managing director Imran Hassen said.
"From the 15th of January next, we are moving into our new plant. It will have a production capacity of 10,000 cars per year," Hassen said.
Skoda India now assembles the premium sedan 'Octavia' at a makeshift facility adjacent to the Siemens factory in Aurangabad.
The new plant would be part of the $56 million investment made by the automaker in the country.
"We expect to breakeven on our investments next year or latest by 2005 if we sell 9,000 cars," he said, adding sales of the Octavia this year should touch about 8,000 units.
Skoda has recently homologated another premium sedan Laurin and Klement and the car, which would be assembled from completely-knocked-down kits was likely to be launched soon, Hassen said.
"The 'Superb' will be positioned against the 'Mercedes E-Class' but at a lower price," Hassen said but declined to give details.
About the 'Octavia', he said the vehicle was now being assembled from completely-knocked-down parts.
The car is sold in two fuel options -- diesel and petrol with the former accounting for maximum sales.
Skoda, which started its operation about 21 months back plans to add 11 dealers to its 23-dealer network by this year-end, Hassen said.
He said the company has absorbed the increase in input costs due to appreciation of the euro as well as the steel price hike and has no immediate plans to pass it on to the customers.