Skoda Expands Operations in Vietnam with Local Assembly of Kushaq and Slavia

Skoda Auto, in partnership with Thanh Cong Group, has launched an assembly facility in Vietnam for the Skoda Kushaq SUV and Slavia sedan using CKD kits from India. The production facility is located in Quang Ninh province and is set to expand its offerings. Skoda aims to capitalize on Vietnam’s growing automotive market, which holds promising growth potential.

Skoda Auto, in collaboration with the Thanh Cong Group, has inaugurated a new production facility in Vietnam to assemble the Skoda Kushaq SUV and Slavia sedan. Both models will be assembled from completely knocked down (CKD) kits sourced from Skoda’s logistics center located in Pune, India. The assembly of the Kushaq has commenced, with the Slavia set to begin production this summer.

The assembly plant, situated in Quang Ninh province, features essential facilities including a welding shop, paint shop, and a final assembly line. Skoda commenced operations in Vietnam in September 2023, establishing 15 sales outlets within the country, with plans to increase this to 32 dealerships by 2025.

Klaus Zellmer, CEO of Skoda Auto, remarked, “Opening this new assembly line marks a milestone in our expansion… and strengthens our position in the ASEAN region.” He expressed enthusiasm for introducing Skoda vehicles from the Vietnamese plant soon. The vehicles for this market will include left-hand drive versions equipped with modern features such as adaptive cruise control and blind spot monitoring.

Skoda currently offers the Karoq and Kodiaq SUVs in Vietnam, imported directly from Europe. As the fourth-largest automotive market in Southeast Asia, Vietnam presents significant growth prospects, with only 34 passenger vehicles available per 1,000 inhabitants in a nation of roughly 100 million people. Skoda highlighted that the region’s economic growth suggests a promising future in automotive sales.

In India, the Skoda Kushaq is priced between Rs 10.99 lakh and Rs 19.11 lakh, while the Slavia ranges from Rs 10.34 lakh to Rs 18.34 lakh. Both models have received a commendable five-star safety rating from Global NCAP, underlining their reliability and safety standards.

In summary, Skoda’s establishment of an assembly facility in Vietnam marks a pivotal step in its endeavor to penetrate the Southeast Asian market. By utilizing CKD kits from India, Skoda aims to enhance its operational efficiency and expand its local presence, with future plans to introduce additional models. The growing automotive market in Vietnam presents significant opportunities for Skoda as it seeks to meet local demands and preferences.

Original Source: www.indiatoday.in