Skoda Auto Expands Assembly Operations to Vietnam for Kushaq and Slavia
Skoda Auto has launched a production facility in Vietnam to assemble the Kushaq and Slavia from CKD kits sourced from India. This initiative marks their expansion into the Vietnamese automotive market, with plans to grow the dealership network. Both models will include advanced features tailored for local consumers, highlighting Vietnam’s potential in the ASEAN market.
Skoda Auto, in partnership with Thanh Cong Group, has inaugurated a new production facility in Vietnam dedicated to assembling the Skoda Kushaq and Slavia models. The vehicles will be constructed using completely knocked down (CKD) kits sourced from Skoda’s logistics center in Pune, India. Assembly for the Kushaq has already commenced, with plans to incorporate the Slavia into production later this summer.
The assembly facility is located in Quang Ninh province and is equipped with state-of-the-art facilities including a welding shop, a paint shop, and a final assembly line. Skoda commenced its operations in Vietnam in September 2023, and has opened 15 sales outlets, with a target of expanding to 32 dealerships by 2025.
Klaus Zellmer, CEO of Skoda Auto, stated that this new assembly line is a significant step in Skoda’s expansion within the promising Vietnamese market. He emphasized the opportunity to strengthen the company’s position in the ASEAN region while collaborating with the Thanh Cong Group. Zellmer expressed eagerness to present the first locally assembled Skoda vehicles to customers shortly.
The Vietnamese market will feature left-hand drive versions of the Kushaq and Slavia, which will boast advanced features such as adaptive cruise control and blind spot monitoring, as well as synthetic leather upholstery. Skoda already markets other SUV models like the Karoq and Kodiaq, imported from Europe, in Vietnam.
Vietnam ranks as the fourth-largest automotive market in Southeast Asia, and with a ratio of only 34 passenger vehicles per 1,000 residents among its population of approximately 100 million, there remains substantial growth potential. According to Skoda, the country benefits from ongoing economic development, making it a promising market for the future.
In India, the Skoda Kushaq is priced between Rs 10.99 lakh and Rs 19.11 lakh (ex-showroom), while the Skoda Slavia is priced from Rs 10.34 lakh to Rs 18.34 lakh (ex-showroom). Notably, both models have achieved a five-star safety rating from Global NCAP.
In summary, Skoda Auto’s new assembly facility in Vietnam represents a strategic move to enhance its presence in the growing Southeast Asian automotive market. Utilizing CKD kits from India, Skoda aims to produce the Kushaq and Slavia locally while providing advanced features for Vietnamese consumers. This expansion reflects Skoda’s commitment to growth and collaboration with local partners.
Original Source: www.indiatoday.in
