New Delhi: Skoda India, the Indian unit of the Czech car maker Skoda Auto AS, will not enter the mass market segment, which accounts for every six out of 10 cars sold in India, its chairman and managing director Sudhir Rao told reporters on Thursday.

But the company will introduce two cars in the B-segment or so-called Swift segment as it looks to capture 5-7% of the total passenger car market in as many years, Rao said.

The company expressed its inability to compete on the cost front in the small car segment.

“We will not go below the Fabia segment. We would have loved to go there, but I don’t think we have risk-taking capabilities to compete with the companies in that segment," Rao said. “We are much more interested in the image. We are not interested in a sub-Fabia car."

Rao was referring to market leaders Maruti Suzuki India Ltd and Hyundai Motor India Ltd, who together dominate the small car segment in the country.

Skoda entered the Indian market 13 years ago as a premium car maker, but it has been unable to take advantage of its experience in the local market.

Skoda sells sedans such as Rapid, Octavia and Superb besides the sports utility vehicle Yeti.

Rao said that his company will remain in the “value luxury" segment even if it means “low volumes" for the company.

The company will bring in Fabia’s replacement in three-four years and one more product, details of which Rao did not disclose.

The next generation Fabia is expected to be launched at the Paris Motor Show in October, but won’t be introduced in India soon.

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