ŠKODA AUTO Strategically Leads Brand Group Volume in ASEAN and Extends Business in the Middle East

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Chandigarh, Mar.16, 2023:– Škoda Auto is forging ahead with its internationalisation strategy: The Czech manufacturer will be strategically leading the Brand Group Volume in its future expansion across the ASEAN region and maximise growth potential for the Volkswagen Group. The company will draw on its expertise in price-sensitive entry-level segments and effectively leverage existing potential. Škoda Auto is on the cusp of entering the Vietnamese market with imported models in 2023 and local CKD production planned for 2024. India is set to become an export hub for the Czech car manufacturer as a further step in to successfully implementing its India strategy. Additionally, Škoda Auto will be taking the next step in the Middle East by further expanding its business activities and leveraging comprehensive synergy effects with its production in India.

 

Klaus Zellmer, Škoda Auto CEO, said that we are expanding Škoda's global footprint by taking over the strategic leadership of the Brand Group Volume in the ASEAN region. This shift in responsibilities underscores the trust and confidence the Volkswagen Group has in the expertise of the Škoda team. We have a clear roadmap and a long-term vision for the region. Our goals are ambitious but achievable: We want to secure a market share of over five per cent for the Brand Group Volume, and we are taking the lead to leverage the immense growth potential in these markets.

 

Martin Jahn, Škoda Auto Board Member for Sales and Marketing, added that ASEAN is the fastest-growing region in the world with a projected market volume of more than 4.1 million vehicles in 2030. We are convinced that our model portfolio has tremendous potential in this region. Alongside our strong partners, we are developing and expanding production capacities and the sales network. I am sure that we will quickly gain a foothold locally. At the same time, we will be stepping up our business activities in the Middle East; we see great opportunities there and expect to significantly increase our sales.

 

Internationalisation as an integral element of the corporate strategy

Thanks to its Next Level – Škoda Strategy 2030, Škoda Auto will be even more international by 2030. To this end, the company is continuously evaluating and developing promising markets for the Volkswagen Group.

In Asia, Škoda Auto already bears Group responsibility for the Indian market. Now, the brand will be strategically leading the entire ASEAN region as part of the Market & Regions Sales Steering of the Volkswagen Brand Group Volume. The aim is to establish Škoda as a strong brand in the region, achieve profitable long-term growth in the volume segments and a significant Group-wide market share in the respective markets. The Czech car manufacturer is now developing a regional steering strategy for these important growth markets.

 

ASEAN growth region

The ASEAN region offers promising growth opportunities; the overall economy is growing by 8% annually. The automotive market is projected to encompass more than 4.1 million vehicles in 2030. The strategic advantages include geographical diversification of production activities, synergies with other regions where Škoda is active and free-trade agreements encouraging product localisation. In addition, the car manufacturer will be drawing on its considerable experience in the Indian market to strengthen its position in the competitive market.

Škoda anticipates significant sales potential in ASEAN and will contribute its expertise in the price-sensitive entry-level segments – competitive A0 vehicles under 20,000 euros. Saloons and SUVs, in particular, have major potential in these markets. With an estimated electrification rate of around 30% by the beginning of the next decade, the future in the market also lies with electric-drive vehicles.