Czech Republic’s Skoda Auto, a part of the Volkswagen group, has indicated that it might be planning to stop the production of its Fabia model at its plants in India.

“Skoda is in the process of strengthening its model range and as a part of this process, Skoda is contemplating a pause in production of the Fabia in India,” a company spokesperson said in a statement.

The decision comes as the company was reportedly making a loss on selling the model in the country. Some say that the company as losing as much as Rs. 1.5 lakh per car and thus was not aggressively marketing the product in the country. Skoda will continue selling the model in the year or until it has stocks to supply the Indian market. Some people closer to the matter said that the company is finding it difficult to break even with the model in the country.

The company had announced several price cuts for the model and the offer price has come down 40 per cent since the model was launched in the country in 2008. The model uses less localization and the falling Indian rupee has made it even more difficult to make a profit on the model in the country. Skoda Auto India’s managing director Sudhir Rao has not commented on the matter yet. The company was able to sell just 115 units during the month of April in the country.

The company is looking to focus on strengthening its presence in the sedan segment with the upcoming launches in 2013-14.