Skoda Kushaq and Slavia Assembled in Vietnam from Indian CKD Kits

Skoda Auto has launched a production unit in Vietnam for the assembly of Kushaq and Slavia vehicles using CKD kits from India. The facility is located in Quang Ninh and is expected to enhance Skoda’s market presence in the rapidly growing Vietnamese automotive industry. The assembly of Slavia is set to begin in summer 2023, with plans for an expanded dealership network.

Skoda Auto, in partnership with the Thanh Cong Group, has inaugurated a new production facility in Vietnam for the assembly of the Skoda Kushaq SUV and Slavia sedan. The assembly utilizes completely knocked down (CKD) kits sourced from Skoda’s logistics center located in Pune, India. The initial production has commenced with the Kushaq, while Slavia assembly is expected to begin this summer.

The new facility, situated in Quang Ninh province, features essential operations such as a welding shop, a paint shop, and a final assembly line, equipping it for vehicle assembly production. Since entering Vietnam’s market in September 2023, Skoda has launched 15 sales outlets and aims to further expand to 32 dealerships by 2025, illustrating an ambitious growth strategy within the region.

Klaus Zellmer, CEO of Skoda Auto, remarked, “Opening this new assembly line marks a milestone in our expansion into the rapidly growing Vietnamese market and strengthens our position in the ASEAN region. By leveraging synergies with our key Indian market, we are setting the stage for success.”

The vehicles will be available in Vietnam as left-hand drive models and will be equipped with features such as adaptive cruise control, blind spot monitoring, and synthetic leather upholstery. Skoda also offers imported models like the Karoq and Kodiaq SUVs in the Vietnamese market.

Vietnam currently ranks as the fourth largest automotive market in Southeast Asia, with only 34 passenger vehicles per 1,000 inhabitants in a population of around 100 million. Due to the nation’s ongoing economic growth, Skoda sees significant potential for growth in this market. In India, the pricing for the Skoda Kushaq ranges from Rs 10.99 lakh to Rs 19.11 lakh, while the Slavia is priced between Rs 10.34 lakh and Rs 18.34 lakh, with both models attaining a five-star safety rating from Global NCAP.

In conclusion, Skoda Auto’s new assembly unit in Vietnam for the Kushaq and Slavia models represents a strategic expansion into a thriving automotive market. The partnership with the Thanh Cong Group, combined with manufacturing efficiencies from India, positions Skoda favorably in Southeast Asia. With the potential market growth and competitive vehicle features, Skoda is poised to enhance its presence in the region.

Original Source: www.indiatoday.in