New Delhi, Jan. 9: Volkswagen’s Skoda Auto is planning to launch a model in the Rs 4-lakh segment in India within the next three years.

“We will look at launching a model in the Rs 4-lakh price segment in the medium term — let’s say in the next three years. We certainly don’t want to be in the mass market but we know there is room for cars at this price point,” Thomas Kuehl, member of the board of directors (sales and marketing), Skoda India, told The Telegraph.

“There is no final decision on the product but we will launch something at a price segment below the Fabia,” he added.

The prices of the Fabia — its premium hatchback launched today — starts from Rs 4.99 lakh (ex-showroom, Delhi) and goes up to Rs 7.68 lakh for the top-end diesel model. The diesel engine of the Fabia is expected to be more refined and powerful than the small capacity diesel engines available in India.

The car will initially be fitted with 1.4-litre petrol and diesel engines and a 1.2-litre version will soon join the club.

The new Fabia is not just nice to look at, it also offers some pretty interesting interior design cues — many of them borrowed from the Roomster MPV.

It’s bigger than its earlier version and offers more bootspace too, all of which should go down well with its Indian customers.

Given that Skoda’s diesel models have done quite well in India, the Fabia should give some serious competition to the diesel Swift.

Skoda has already started its marketing and advertising campaigns. It will be the first volume model from the company which already sells the Octavia, the Laura, the Superb and the L&K in India.