Skoda has been able to achieve unprecedented growth and market share in India on the back of Kushaq and Slavia and wishes to replicate that for the Vietnamese market going forward.
In the latest news from the international automobile industry, Skoda Auto has entered the car market Vietnam. Amidst the Russia-Ukraine war, India has emerged as the third-largest market for the Czech automaker after Germany and the Czech Republic. Establishing the brand in India, Skoda has got a solid sense of the mentality of car buyers in the emerging markets of the world. That is why it aims to expand into South-East Asia as a part of its internationalisation process.
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Skoda Enters Vietnam
As per the official announcement by Skoda Auto Volkswagen India Private Limited on October 7, 2022, the made-in-India Kushaq will commence selling in Vietnam in 2024 which will swiftly be followed by the premium mid-size sedan, the Slavia. The components for these products will be exported to Vietnam from the Chakan facility in Pune, India. The assembly will take place in Vietnam following the CKD route. In the meanwhile, the production facility will be established there in association with Thanh Cong (TC Motor) for local manufacturing at a later stage.
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The initial plan is to sell 30,000 units annually with the prospective to take this to 40,000 soon. To begin with, the European models of the Kodiaq, Karoq, Superb and Octavia will be imported to Vietnam in 2023. This will give a taste of what Skoda products are all about to Vietnamese car buyers. Thereafter, Indian products will start flooding the market starting in 2024.
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The India 2.0 strategy of the Skoda VW Group for India is instrumental to this international growth of the brand. Understanding the growth potential in some of the fastest-growing economies and automobile markets is critical to expanding the business rapidly while keeping in mind the needs and idiosyncracies of the local people. The MQB A0 IN platform is the basis for Kushaq and Slavia which will play the deciding role in the future of the German-Czech joint venture. What do you make of this plan?