Mumbai: Volkswagen-owned Czech carmaker Skoda Auto plans to enter Vietnam subsequent 12 months with an area associate, Thanh Cong Motor Vietnam (TC Motor).
Škoda Auto will initially import automobiles from Europe. It plans to start assembling made-in-India Kushaq and Slavia fashions shipped from Škoda Auto Volkswagen India’s Chakan facility from 2024. A 16,000 sq. m plant is being inbuilt Pune to fabricate the respective subassemblies.
“For Škoda Auto, coming into the Vietnamese market is the subsequent logical step in its internationalisation technique. The geographical proximity to India gives nice synergy results. The plan to export car kits from the Pune plant is a ‘main development’ of the Volkswagen Group’s India 2.0 challenge. “In the end, this may considerably strengthen our presence in Southeast Asia,” Klaus Zellmer, CEO, Škoda Auto, stated.
The development of a TC Motor-owned manufacturing line is underway and is anticipated to be accomplished within the first half of 2024. Meeting of the made-in-India Kushaq and Slavia from CKD format can even start in 2024. Škoda Auto sees Vietnam as a ‘dynamically rising financial system’ with ‘vital potential’ in its automotive market. ‘The nation presents very best circumstances to additional strengthen Škoda Auto’s place within the area’, the corporate stated in a press launch. The OEM anticipates an preliminary annual gross sales quantity of 30,000 autos.
“Exports stay a basic pillar of Škoda Auto Volkswagen India’s development plan. After the profitable launch of the Volkswagen Taigun and Virtus in international markets, we just lately rolled out Škoda Kushaq to the AGCC markets. Now we’re gearing as much as introduce Kushaq and Slavia within the Vietnamese market, which is a vital milestone for the crew in India. With its vital success within the native and abroad markets, our INDIA 2.0 challenge stays a key driver within the Group’s endeavour to ‘Engineer automobiles in India to be Pushed by the World’,” Piyush Arora, MD, Škoda Auto Volkswagen India, stated.
Škoda Auto will initially import the Kodiaq, Karoq, Excellent, and Octavia fashions successively from Europe to Indonesia. TC Motor will take over the native manufacturing and distribution of the autos. With over 20 years of expertise in car manufacturing and gross sales on a contract foundation, the Hanoi-based Group can also be investing within the acquisition and growth of business websites, such because the Viet Hung Industrial Park. Sooner or later, Škoda fashions will likely be rolling off the manufacturing line on the web site in Quang Ninh province.
Exports of the primary left-hand drive Škoda Kushaq from India to the Gulf States started just lately. Škoda Auto has led the Volkswagen Group’s actions within the Indian market since 2019. The Group’s investments up to now quantity to EUR 1 billion, of which EUR 250 million have been allotted to analysis and growth. In the long run, Škoda goals to attain a 5% market share together with the Volkswagen model in India.
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Midway via the present monetary 12 months, the auto gross sales graph is wanting up owing to the earlier low base, the easing of semiconductor scarcity, narrowing supply-demand hole, thrilling new launches and the buyer enthusiasm of a COVID-free festive season after two years.
