Chandigarh, 7 October 2022 – ŠKODA AUTO continues to advance the company's internationalisation and is on the cusp of entering the Vietnamese market. In cooperation with its local partner, the Thanh Cong Motor Vietnam (TC Motor), the Czech carmaker will be offering the first European models in the country as early as 2023. The assembly of the made-in-India KUSHAQ and SLAVIA models shipped from ŠKODA AUTO Volkswagen India's Chakan facility will also start in 2024. The production line is currently under construction. With its dynamically growing economy and significant potential in the automotive market, the country presents the ideal conditions to further strengthen ŠKODA AUTO's position in the region. The company anticipates an initial sales volume of 30,000 vehicles per year.
ŠKODA AUTO CEO, Klaus Zellmer emphasises that for ŠKODA 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.
Managing Director of ŠKODA AUTO Volkswagen India Piyush Arora added that exports remain a fundamental pillar of ŠKODA AUTO Volkswagen India's growth plan. After the successful launch of the Volkswagen Taigun and Virtus in global markets, we recently rolled out the ŠKODA KUSHAQ to the AGCC markets. Now we are gearing up to introduce the ŠKODA KUSHAQ and SLAVIA in the Vietnamese market, which is an important milestone for the team in India. With its significant success in the local and overseas markets, our INDIA 2.0 project remains a key driver in the Group's endeavour to 'Engineer cars in India to be Driven by the World'.
Initially, the KODIAQ, KAROQ, SUPERB and OCTAVIA model series will successively be imported from Europe, starting in 2023. As ŠKODA AUTO's local partner in the Vietnamese market, the TC Motor, will take over the local production and distribution of the vehicles. With over 20 years of experience in vehicle manufacturing and sales on a contract basis, the Hanoi-based group is also investing in the acquisition and development of industrial sites, such as the Viet Hung Industrial Park. In the future, ŠKODA models will be rolling off the production line at the site in Quang Ninh province.
The construction of a TC Motor-owned production line is already underway and should be completed in the first half of 2024. Assembly of the made-in-India KUSHAQ and SLAVIA model series from CKD format will also begin in 2024. The KUSHAQ will be available to order in the first half of 2024, and orders for the SLAVIA can be placed from the fourth quarter of 2024. A 16,000-square-metre plant is being built in Pune to manufacture the respective subassemblies. By exporting vehicles from India, the car manufacturer is pressing ahead with the implementation of the INDIA 2.0 project and emphasising India's strategic importance in the automaker's development. Exports of the first left-hand drive ŠKODA KUSHAQ to the Gulf States began recently. ŠKODA AUTO has led the Volkswagen Group's activities on the Indian market since 2019. The Group's investments to date amount to one billion euros, of which 250 million euros have been allocated to research and development. In the long term, ŠKODA aims to achieve a five percent market share alongside the Volkswagen brand, depending on market and segment developments.
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