ŠKODA AUTO is preparing to enter the Vietnamese market.
10-10-2022 14:52 - MARKET NEWS
ŠKODA AUTO continues to push internationalization forward company and is about to enter the Vietnamese market. In collaboration with his local partner, Thanh Cong Motor Vietnam (TC Motor), the Bohemian automaker will offer the first European models in the country as early as 2023. The assembly of the CKD kits (Completely Knocked Down) of the KUSHAQ and SLAVIA models will start in 2024. The production line is currently under construction. With its dynamic and significant growing economy automotive market potential, Vietnam presents the ideal conditions to strengthen further the position of ŠKODA AUTO in the region. The company expects a volume of initial sales of 30,000 vehicles per year.
CKD production of KUSHAQ and SLAVIA as early as 2024, the ENYAQ iV family will be available after 2025. Construction of a TC Motor-owned production line is already underway and should be completed in the first half of 2024. The assembly of the made-in-India model series KUSHAQ and SLAVIA in CKD format will therefore start in 2024. The KUSHAQ will be orderable in the first mid 2024, while orders for SLAVIA can be placed starting from the fourth quarter of 2024. A 16,000-square-foot factory is under construction in Pune for production of the respective subgroups. The models of the ENYAQ iV family, fully electric, will complete the local portfolio in Vietnam after 2025.
Exporting vehicles from India is the next step in the INDIA 2.0 project With the export of vehicles from India, ŠKODA AUTO is continuing to implement the INDIA project 2.0 and underlines the strategic importance of India in the development of the automaker. Export of the first left-hand drive ŠKODA KUSHAQ has recently begun Gulf states. ŠKODA AUTO has been leading 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 they were destined for research and development. In the long term, ŠKODA aims to achieve one 5% market share alongside the Volkswagen brand, depending on market developments e of the segment.
Rapid expansion of the dealer network in Vietnam, high sales potential The vehicles will be distributed through a regional dealer network made up of local partners. The first dealers are expected in Hanoi and Ho Chi Minh City, two cities that together register the most new car sales in Vietnam. Subsequently, ŠKODA AUTO plans to rapidly expand the dealer network to include more than 50 partners. ŠKODA AUTO expects an annual sales potential of 30,000 units initially and over 40,000 units annually starting in 2030, also thanks to the interest in volume models based on the platform MQB-A0-Global and the growing demand for electric vehicles in the main cities of the country. Strong growth economy, highly dynamic automotive market and free trade agreements they encourage commitment.