Skoda Kushaq and Slavia Assembly Begins in Vietnam with CKD Kits from India
Skoda Auto has opened an assembly facility in Vietnam for the Kushaq and Slavia models, utilizing CKD kits from India. The production unit, located in Quang Ninh province, is equipped with advanced manufacturing capabilities. Skoda aims to enhance its presence in the ASEAN market and expand its dealership network significantly by 2025, capitalizing on Vietnam’s growing automotive sector.
Skoda Auto, in collaboration with the Thanh Cong Group, has initiated a new production unit in Vietnam for assembling the Skoda Kushaq and Skoda Slavia models. These vehicles will be constructed using completely knocked down (CKD) kits sourced from Skoda Auto’s logistics center located in Pune, India. Presently, assembly for the Kushaq has commenced, with plans to introduce the Slavia this summer.
The new facility, situated in Quang Ninh province, is designed with modern manufacturing features, including a welding shop, paint shop, and final assembly line. Skoda began its operations in Vietnam in September 2023 and has successfully established 15 sales outlets, with ambitions to increase this number to 32 by 2025.
Klaus Zellmer, CEO of Skoda Auto, expressed enthusiasm regarding the expansion, stating that the new assembly line signifies a pivotal development in penetrating the rapidly expanding Vietnamese market, enhancing their presence within the ASEAN region. The company aims to introduce the first Skoda vehicles produced in Vietnam to potential customers shortly.
The assembled versions of Kushaq and Slavia will be left-hand drive, featuring advanced technology such as adaptive cruise control and blind spot monitoring, in addition to synthetic leather upholstery. Currently, Skoda also markets the Karoq and Kodiaq SUVs in Vietnam, both of which are imported from Europe.
Vietnam ranks as the fourth-largest automotive market in Southeast Asia. With a mere 34 passenger vehicles per 1,000 inhabitants in a population exceeding 100 million, the country exhibits significant growth potential in the automotive sector, buoyed by ongoing economic progress. Skoda anticipates strong market performance in Vietnam as it continues to expand its offerings.
In the Indian market, the Skoda Kushaq is priced between Rs 10.99 lakh and Rs 19.11 lakh (ex-showroom), while the Slavia is available from Rs 10.34 lakh to Rs 18.34 lakh (ex-showroom). Both models have earned a commendable five-star safety rating from Global NCAP, indicating a commitment to quality and safety.
In conclusion, Skoda Auto’s establishment of a new assembly facility in Vietnam for the Kushaq and Slavia models illustrates a strategic effort to strengthen its foothold in the ASEAN market. The utilization of CKD kits from India not only emphasizes operational synergies but also positions Skoda for optimized market entry. With ambitious plans for dealership expansion and a focus on modern vehicle features, Skoda aims to harness Vietnam’s burgeoning automotive landscape.
Original Source: www.indiatoday.in
