Skoda Kushaq and Slavia to Be Assembled in Vietnam from CKD Kits from India

Skoda Auto, in partnership with the Thanh Cong Group, has launched a new assembly facility in Vietnam to produce the Skoda Kushaq and Slavia using CKD kits from India. The plant, located in Quang Ninh province, signifies Skoda’s expansion into the Vietnamese market, attracting growth potential. CEO Klaus Zellmer expressed optimism about this initiative enhancing their operations in the ASEAN region.

Skoda Auto, in collaboration with the Thanh Cong Group, has inaugurated a new assembly facility in Vietnam designed to assemble the Skoda Slavia mid-size sedan and the Skoda Kushaq mid-size SUV. Both models will utilize completely knocked down (CKD) kits sourced from the logistics centre of Skoda Auto in Pune, India. Initially, the assembly of the Kushaq has commenced, with plans for Slavia’s production to start this summer.

The production unit is situated in Quang Ninh province and boasts various manufacturing capabilities, including a welding shop, a paint shop, and a final assembly line. Since Skoda established its presence in Vietnam in September 2023, the company has successfully launched 15 sales outlets, with a strategic goal to increase this total to 32 dealerships by the year 2025.

Klaus Zellmer, CEO of Skoda Auto, emphasized the significance of this new assembly line in enhancing Skoda’s footprint in the expanding Vietnamese market, stating it strengthens their position within the ASEAN region. He highlighted the importance of collaborating with their Indian market, asserting that this initiative paves the way for mutual success with their local partner, Thanh Cong Group.

The Vietnam assembly will produce left-hand drive versions of the Kushaq and Slavia, equipped with advanced features such as adaptive cruise control, blind spot monitoring, and synthetic leather upholstery. Currently, Skoda offers other SUVs like the Karoq and the Kodiaq in Vietnam, which are imported from Europe.

As the fourth-largest automotive market in Southeast Asia, Vietnam demonstrates considerable growth potential, with just 34 passenger vehicles per 1,000 inhabitants in a country with a population of approximately 100 million. With ongoing economic development, Skoda anticipates significant growth opportunities in this region. For context, in India, the Skoda Kushaq is priced between Rs 10.99 lakh and Rs 19.11 lakh, while the Slavia’s price ranges from Rs 10.34 lakh to Rs 18.34 lakh, both achieving a five-star safety rating at Global NCAP.

Skoda Auto’s establishment of a new assembly unit in Vietnam for the Kushaq and Slavia underscores their strategic expansion in Southeast Asia. The initiative, utilizing CKD kits from India, not only enhances their production capabilities but also strengthens partnerships in the region. Moreover, as Vietnam’s automotive market shows immense growth potential, Skoda is well-positioned for future success, having already laid down a significant operational foundation.

Original Source: www.indiatoday.in