Skoda Auto enter the Vietnamese market
Skoda Auto is poised to join the Vietnamese market as it pushes forward with its internationalization. The Czech automaker will start selling the first European models in the nation as early as 2023 in collaboration with its local partner, Thanh Cong Motor Vietnam (TC Motor). The Skoda Kushaq and Skoda Slavia vehicles that Skoda Auto delivered were put together at the Chakan plant for Volkswagen India is scheduled to open in 2024.
Starting in 2023, imports of the Kodiaq, Karoq, Superb, and Octavia model series will be made in order from Europe. TC Motor will take over local manufacture and distribution of the cars as Skoda Auto's local partner in the Vietnamese market. The Hanoi-based firm has more than 20 years of expertise in contract vehicle manufacture and sales, and it also invests in the purchase and development of industrial locations like the Viet Hung Industrial Park. At the plant in Quang Ninh province, Skoda models will soon be leaving the assembly line.
A production line operated by TC Motor is now being built; it should be finished in the first half of 2024. Beginning in 2024, assembly of the made-in-India Kushaq and Slavia model series will also start. Orders for the Kushaq may be made starting in the first half of 2024, while those for the Slavia can be made starting in the fourth quarter of that year.
In Pune, a 16,000-square-meter facility is being developed to produce the aforementioned subassemblies. The carmaker is advancing the implementation of the INDIA 2.0 project and highlighting India's strategic relevance in the development of the automaker by exporting cars from India.
Skoda Auto CEO, Klaus Zellmer emphasises: "For Å KODA AUTO, entering the Vietnamese market is the next logical step in our internationalisation strategy. Our attractive model portfolio offers exactly the right products for our customers, and we will be able to play to our strengths in this highly dynamic market. In addition, the geographical proximity to India provides great synergy effects; as early as 2024, we will be exporting vehicle kits from our Indian plant in Pune to Vietnam, marking a major advancement of our INDIA 2.0 project. Ultimately, this will significantly strengthen our presence in Southeast Asia."
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