Skoda Kushaq and Slavia Assembly Commences in Vietnam with Indian Kits

Skoda Auto has commenced assembly of the Kushaq and Slavia vehicles in Vietnam using CKD kits from India. The new production unit, located in Quang Ninh province, is equipped for modern automobile assembly and aligns with Skoda’s expansion strategy in the ASEAN market. The company aims to leverage synergies with India to capture the growing Vietnamese automotive market.

Skoda Auto has partnered with the Thanh Cong Group to establish a new production unit in Vietnam for the assembly of the Skoda Slavia and Skoda Kushaq. Both vehicles will be assembled from completely knocked down (CKD) kits sourced from Skoda’s logistics centre in Pune, India. The assembly commenced with the Kushaq and will expand to include the Slavia this summer.

The newly opened facility, located in Quang Ninh province, boasts essential infrastructure such as a welding shop, a paint shop, and a final assembly line, designed to enhance local assembly operations. Skoda commenced its ventures in Vietnam in September 2023 and has already opened 15 sales outlets, with plans to grow this network to 32 dealerships by 2025.

Klaus Zellmer, CEO of Skoda Auto, expressed that the opening of the assembly line is a significant step in expanding within the burgeoning Vietnamese market. He emphasized the advantage of leveraging synergies with the Indian market, which he anticipates will benefit both Skoda and Thanh Cong Group. The CEO expressed enthusiasm about introducing the first vehicles assembled in Vietnam to customers soon.

Both the Kushaq and Slavia will feature left-hand drive specifications, equipped with advanced features such as adaptive cruise control, blind spot monitoring, and synthetic leather upholstery. Skoda also offers imported SUVs like the Karoq and Kodiaq in Vietnam.

Vietnam stands as the fourth-largest automotive market in Southeast Asia, with a low ratio of only 34 passenger vehicles per 1,000 inhabitants among its approximately 100 million population. Given the country’s continued economic growth, Skoda identifies Vietnam as having significant growth potential in the region. In India, the Kushaq is priced from Rs 10.99 lakh to Rs 19.11 lakh, while the Slavia ranges from Rs 10.34 lakh to Rs 18.34 lakh, with both securing five-star safety ratings from Global NCAP.

In conclusion, Skoda Auto’s establishment of a new assembly facility in Vietnam marks a pivotal advancement in their expansion strategy within the ASEAN region. By utilizing CKD kits from India, Skoda aims to enhance its market presence with models such as the Kushaq and Slavia, which are tailored for local consumers. Given Vietnam’s growing automotive market, Skoda’s initiatives have the potential to meet demand and drive further growth.

Original Source: www.indiatoday.in