MUMBAI: Volkswagen-owned Czech automaker Skoda Auto plans to enter Vietnam next year with local partner Tan Kong Motor Vietnam (TC Motor).
Škoda Auto will initially import cars from Europe. The company will start assembling Indian-made Kushak and Slavia models that will be shipped from Skoda Auto Volkswagen India’s Chakan plant from 2024.
“For Škoda Auto, entering the Vietnamese market is the next logical step in our internationalization strategy. The geographical proximity to India offers great synergies. We plan to export vehicle kits from our Pune plant. is a ‘big step’ for the Volkswagen Group’s India 2.0 project. Skoda Auto CEO Klaus Selmer said: “Ultimately, this will significantly strengthen our presence in Southeast Asia.
Construction of the TC Motor-owned production line is underway and is expected to be completed in the first half of 2024. Assembly of the Indian Kushaq and Slavia from CKD format will also start in his 2024. Škoda Auto sees Vietnam as a “dynamically growing economy” with “great potential” in the automotive market. “The country presents ideal conditions for further strengthening Skoda Auto’s position in the region,” the company said in a press release. The OEM expects initial annual sales of 30,000 units.
“Export remains a fundamental pillar of Škoda Auto Volkswagen India’s growth plan. After the successful launch of the Volkswagen Taigun and Virtus on the global market, we recently launched the Škoda Kushaq on the AGCC market. We are preparing to introduce Kushak and Slavia into Vietnam market which is an important milestone for our team in India.Our INDIA 2.0 project, which has been very successful in the domestic and international market, is called ‘Indian Engineer Cars to the World.’ continues to be a key driver of the Group’s efforts to “lead by
Škoda Auto will initially import the Kodiaq, Karoq, Superb and Octavia models from Europe to Indonesia in sequence. TC Motor will take over local production and sales of vehicles. The Hanoi-based group has more than 20 years of experience in manufacturing and selling vehicles on a contract basis and also invests in acquiring and developing industrial land such as the Viet Hung Industrial Park. In the future, Skoda models will be off the production line at a factory in Quang Ninh province.
The export of the first left-hand drive Skoda Kushak from India to the Gulf countries has recently begun. Skoda Auto has been leading the Volkswagen Group’s activities on the Indian market since 2019. The Group’s investment to date amounts to his €1 billion, of which €250 million is allocated for research and development. In the long term, Skoda aims to achieve his 5% market share in India alongside the Volkswagen brand.
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